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Full text of "North Carolina Register v.13 no. 20 (4/15/1999)"

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NORTH CAROLINA 

REGISTER 



VOLUME 13 • ISSUE 20 • Pages 1714 - 1765 



April 15, 1999 



IN THIS ISSUE 

Voting Rights Letter 

Agriculture 

Commer<se 

Environment and Natural Respurces 

Rules Review Commission 

Contested Case Decisions 



PUBLISHED BY <:; 

The Office of Administrative Hearings 
Rules Division 
PC Drawer 27447 
Raleigh, NC 27611-7447 
Telephone (919) 733-2678 
Fax (919) 733-3462 



RECEiVED 

APR 1 5 1999 



KA'i i-iRiN£ R. EVERETT 
LAW LIBRARY 



This publication is printed on permanent, acid-free paper in compliance with G.S. 125-1 1. 13 



For those persons tiiat have questions or concerns regarding the Administrative Procedure Act or any of its 
components, consult with the agencies below. The bolded headings are typical issues which the given ^ 



agency can address, but are not inclusive. 



Rule Notices, Filings, Register Deadlines, Copies of Proposed Rules, etc. 



Office of Administrative Hearings 
Rules Division 
Capehart-Crocker House 
424 North Blount Street 
Raleigh, N(»th Carolina 27601-2817 



#li9^J33-2678*^..^,,^ 
(919) 733-3462 FAX 




contact: Molly Masich, Director APA Services nimasich@oah.state.nc.us 

RiAy Creech, Publications Coordinator rcreech@oah.state.nc.us 



Fiscal Notes & Economic Analysis 

' Office of State Budget and Management 
116 West Jones Street 
Raleigh, North Carolina 27603-8005 

contact: j^arren Plonk, Ecoik)niist III 



(919)733-7061 
(919) 733-0640 FAX 

wplonk@osbm.statejic.us 



Rule Review and Legal Issues 

Rules Review Commission 
1307 Glenwood Ave., Suite 159 
Raleigh, North Carolina 27605 

contact Joe DeLuca Jr., Staff Director Counsel 
Bobby Bryan, Staff Attorney 



(919)733-!il2T^''^"'' 
(919) 733-9415 FAX 



.>Xt«*«-»K«»««««««»Wio(»w-**«M»J«»^^ .-. 



Legislative Process Concerning Rule-making 

Joint Legislative Administrative Procedure Oversight Committee 

545 Legislative Office Building 

300 North Sahsbury Street (9 1 9) 733-2578 

Raleigh, North Carolina 276 1 1 (9 19) 715-5J|^ M^ 



%'. 



contact: Mary Shuping, Staff Liaison 



nwys(^ros.ncga.state.nc:iis 



County and Municipality Government Questions or Notification 

NC Association of County Commissioners 

2 1 5 North Dawson Street (9 1 9) 7 1 5-2893 

Raleigh, North Carolina 27603 



contact: Jim Blackburn or Rebecca Troutman 

NC League of Municipalities 
2 1 5 North Dawson Street 
Raleigh, North Carolina 27603 

contact: Paula Thomas 



(919)715-4000 



This publication is printed on permanent, acid-free paper in compliance "with G.S. 125-11.13 



NORTH CAROLINA 
REGISTER 



IN THIS ISSUE 



» 




I. IN ADDITION 
Voting Rights Letter 



II. 



III. 



Volume 13, Issue 20 
Pages 1714 -1765 



April 15, 1999 



1714 



RULE-MAKING PROCEEDINGS 
Environment and Natural Resources 

Environmental Management 



1715- 1716 



PROPOSED RULES 
Agriculture 

Consumer Services - Grant Programs 1718-1719 

Food and Drug Protection 1717-1718 

Markets 1718 

Commerce 
Commerce Finance - Departmental Rules 1719 - 1727 

Environment and Natural Resources 

Environmental Management 1727 - 1737 

Health Services 1 738 - 1 739 

Wildlife Resources Commission 1737 - 1738 



I 



This issue contains documents officially filed 
through March 24. 1999. 



IV. TEMPORARY RULES 

Environment and Natural Resources 

Health Services 



1740 



Office of Administrative Hearings 

Rules Division 

424 North Blount Street (27601 ) 

PC Drawer 27447 

Raleigh. NC 2761 1-7447 

(919)733-2678 

FAX (919) 733-3462 



Julian Mann 111. Director 

Camille Winston. Deputv Director 

Molly Masich, Director of APA Services 

Ruby Creech. Publications Coordinator 

Jean Shirle>. Editorial Assistant 

Linda Dupree, Editorial Assistant 

Jessica Flowers, Editorial Assistant 



V. RULES REVIEW COMMISSION 1741-1743 



VI. CONTESTED CASE DECISIONS 

Index to ALJ Decisions 1 744 - 1 755 

Text of Selected Decisions 

98EHR0703 1756- 1761 

98 EHR 0776 1 762 - 1 765 

98 EHR 0777 1 762 - 1 765 

VII. CUMULATIVE INDEX 1-84 



» 



Sorth Carolina Register is published semi-monthK tor $1''5 per \car b\ the Office of Adminislralue Hearings. 424 North Blount Street. Raleigh. NX. 
2760f (ISSN 15200604) to mail at Penodicals Rates is paid at Raleigh. NC. POSTMASTER Send .Address changes to the Sonh Carolina Register. 
PC Drawer 27447. Ralemh NC 27611-7447 



NORTH CAROLINA ADMINISTR.4TIVE CODE CLASSIFICATION SYSTEM 



The North Carolina Administrative Code (NCAC) has four major subdivisions of rules. Two of these, titles and chapters, 
are mandatory. The major subdivision of the NCAC is the title. Each major department in the North Carolina executive 
branch of government has been assigned a title number. Titles are further broken down into chapters which shall be 
numerical in order. The other Awo, subchapters and sections are optional subdivisions to be used by agencies when 
appropriate. 



TITLE/MAJOR DIVISIONS OF THE NORTH CAROLINA ADMINISTRATIVE CODE 



TITLE 



DEPARTMENT 



LICENSING BOARDS 



CHAPTER 



1 


Administration 


Acupuncture 


1 


2 


Agriculture 


Architecture 


2 


3 


Auditor 


Athletic Trainer Examiners 


3 


4 


Commerce 


Auctioneers 


4 


5 


Correction 


Barber Examiners 


6 


6 


Council of State 


Certilled Public Accountant Examiners 


8 


7 


Cultural Resources 


Chiropractic Examiners 


10 


8 


Elections 


Employee Assistance Professionals 


11 


9 


Goxemor 


General Contractors 


12 


10 


Health and Human Services 


Cosmetic Art Examiners 


14 


11 


Insurance 


Dental Examiners 


16 


12 


Justice 


Dietetics/Nutrition 


17 


13 


Labor 


Electrical Contractors 


18 


14A 


Crime Control & Public Safety 


Electrolvsis 


19 


ISA 


Environment and Natural Resources 


Foresters 


20 


16 


Public Education 


Geologists 


21 


17 


Revenue 


Hearing Aid Dealers and Fitters 


22 


18 


Secretarv of State 


Landscape Architects 


26 


19A 


Transportation 


Landscape Contractors 


28 


20 


Treasurer 


Marital and Famih Therapy 


31 


*21 


Occupational Licensing Boards 


Medical Examiners 


32 


22 


Administrative Procedures (Repealed) 


Midwifery Joint Committee 


33 


23 


Community Colleges 


Mortuar) Science 


34 


24 


Independent Agencies 


Nursing 


36 


25 


State Personnel 


Nursing Home Administrators 


37 


26 


Administrative Hearings 


Occupational Therapists 


38 


27 


NC State Bar 


Opticians 


40 






Optometrv 


42 






Osteopathic Examination & Reg. (Repealed) 


44 






Pastoral Counselors. Fee-Based Practicing 


45 






Pharmacv 


46 






Phvsical Therapv Examiners 


48 






Plumbing. Heating & Fire Sprinkler Contractors 


50 






Podiatrv Examiners 


52 






Professional Counselors 


53 






Psvchologv Board 


54 






Professional Engineers & Land Surveyors 


56 






Real Estate Appraisal Board 


57 






Real Estate Commission 


58 






Refrigeration Examiners 


60 






Sanitarian Examiners 


62 






Social Work Certification 


63 






Soil Scientists 


69 






Speech & Language Pathologists & Audiologists 


64 






Substance Abuse Professionals 


68 






Therapeutic Recreation Certification 


65 






Veterinarv Medical Board 


66 



Note: Title 21 contains the chapters of the various occupational licensing boards. 



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IN ADDITION 



This Section contains public notices that are required to he published in the Register or have been approved by tljc Codijier 
of Rules for publication. 



U.S. Department of Justice 
Civil Rights Division 



EJ:GS:KIF:cly Voting Section 

DJ 1 66-0 1 2-3' PO. Box 66128 

99-0 1 83 Washington. D. C. 20035-6128 

99-0452 

99-0568 

March 19, 1999 

Linda A. Miles, Esq. 

City Attorney 

P.O. Box 3 136 

Greensboro. NC 27402-3136 

Dear Ms. Miles: 

This refers to the three annexations (Ordinance Nos. 98-2, 99-1 1, and 99-17) and their designation to districts of the City 
of Greensboro in Guilford County, North Carolina, submitted to the Attorney General pursuant to Section 5 of the Voting Rights 
Act, 42 U.S.C. 1973c. We received your submissions on .lanuary 27, February 19, and March 2, 1999. 

The Attorney General does not interpose any objection to the specified changes. However, we note that Section 5 
expressly provides that the failure of the Attorney General to object does not bar subsequent litigation to enjoin the enforcement of 
the changes. In addition, as authorized by Section 5. we reserve the right to reexamine these submissions if additional information 
that would otherwise require an objection comes to our attention during the remainder of the sixty-day review period. See the 
Procedures for the Administration of Section 5 (28 C.F.R. 51.41 and 51.43). 

Sincerely, 

Elizabeth Johnson 
Chief, Voting Section 



13:20 NORTH CAROLINA REGISTER April 15,1999 1714 



RULE-MAKING PROCEEDINGS 



A Notice oj Rule-making Pruceedings is a siatemeiu oj subject matter of the agency's proposed rule making. The agency 
must publish a notice of the subject matter for public comment at least 60 days prior to publishing the proposed text of a rule. 
Publication of a temporary- rule serves as a Notice of Rule-making Proceedings and can be found in the Register under the 
section heading of Temporary Rules. A Rule-making Agenda published by an agency ser\-es as Rule-making Proceedings and 
can be found in the Register under the section heading of Rule-making Agendas. Statutoiy reference: G.S 1 50B-2I.2. 



TITLE 15A - DEPARTMENT OF ENVIRONMENT 
AND NATURAL RESOURCES 

CHAPTER 2 - ENVIRONMENTAL MANAGEMENT 

A Totice of Rule-making Proceedings is hereby given by the 

J. V DE.\'R-Environmental Management Commission in 
accordance with (J.S. 150B-21.2. The ageticy shall 
subsequently publish in the Resister the text of the rules it 
proposes to adopt as a result of this notice of rule-making 
proceedings and any comments received on this notice. 

Citation to Existing Rules Affected by this Rule-Making: 

I5A NCAC 2E .0102:0103. .0106-.0I07. .0201-.0202, .0205. 
. 050 1-. 0504. Other rules may be proposed in the course of the 
rule-making process. 



Authority for the rule-making: 

1 43-2 1 5. h 



G.S 143-2 1 5. 1 1 through 



Statement of the Subject Matter: The Water Use Act ofl967 
allows for the Environmental .Managetnent Commission to 
declare a capacity use area and prepare rules where 
aggregate water uses exceed the source's safe yield. There is 
evidence of present and future groundwater supply shortages 
within the Central Coastal Plain of North Carolina. Within 
this l5-counry area, groundwater from the Black Creek and 
Upper Cape Tear aquifers is being withdrawn at a rate that 
exceeds the available recharge. The Central Coastal Plain 
Capacit}' Use .4rea rule would regulate water use through 
permitting. 

Reason for Proposed Action: There is increasing evidence 
of present and future grounchiater supply shortages within the 
area encompassed by the following 15 North Carolina 
counties: Beaifort, Carteret. Craven. Duplin. Edgecombe. 
Greene. Jones. Lenoir Martin. Onslow. Pamlico. Pitt. 
Washington. Wayne and Ullson. Within these counties 
groundwater from the Black Creek and Upper Cape Fear 
aquifers is being withdrcrwn at a rate that exceeds the 
available recharge. To address threatened groundv.ater 
supplies in the region the North Carolina Division of Water 
Resources requests the Environmental Managetnent 
Commission to create a capacity use area. The Central 
Coastal Plain Capacit}- Use Area would regulate water use 
through permitting to avoid damage to the groundwater 
resources and to maintain those sources of water indefinitely. 
The proposed regulation is a major rule and would affect both 
state funds and local government expenditures. 

Water levels in the Black Creek and Upper Cape Fear 



aquifers hcn'e been declining since the late 1960s as 
documented by Division of Water Resources databases. The 
Division has anecdotal information from the 1920s that water 
flowed from artesian wells at the time they were constructed. 
This continued decline, from free-flowing wells to water levels 
as much as 195 feet below land surface, indicates that current 
withdrawals of water from these aquifers exceed the available 
supply that can be used on a sustainable basis. Regulating the 
use of water in this area fulfills the intent of the Water Use Act 
of 1967 to protect the resource and to allow water uses that 
can be sustained into the future. Water users in this area have 
overused the resoitrce since it has provided the highest quality 
water for their uses at the lowest costs. Growth in demand 
and the physical limits of the hydrogeologic system have 
resulted in the present situation. 

Demands for water exceed the safe yields of the Black 
Creek and Upper Cape Fear aquifers such that other sources 
of water must be brought on line by water supply systems. 
Suiface water and other aquifers will be used to meet this 
deficit. The cn'ailability of surface water sources in these 
counties is affected by Mater quality issues. Therefore, the 
proposed capacity use area includes regulation of both 
surface and groundwater withdrawals. The high yielding 
Castle Hayne aquifer is available in the eastern portion of the 
affected area. This capacity use area is proposed to include 
those eastern counties to control the exchange of water and 
promote controlled development of alternative supplies. 
Because the proposed capacit}' use area encompasses all 
areas within the exiling Capacity Use .Area No. I that require 
continued regulation, the existing Capacity Use .Area No. 1 
declaration and Rule (15A NCAC 2E.0201. .0202. and .0205) 
should be repealed when this proposed rule becomes effective. 

The Water Use Act of 196" allows for the 
Environmental Management Commission to "declare and 
delineate from time to time, and may modify, capacity use 
areas of the State where it finds that the use of groundwater or 
suiface water or both require coordination and limited 
regulation for protection of the interests and rights of 
residents or property owners of such areas or of the public 
interest. " The Act further states that a capacity use area "is 
one where the Commission finds that the aggregate uses of 
groundwater or surface water, or both, in or affecting said 
area (i) hcn-e developed or threatened to develop to a degree 
which requires coordination and regulation, or fii) exceed or 
threaten to exceed, or otherwise threaten or impair the 
renewal or replenishment of such waters or any part of them. " 

The most threatened portions of the Black Creek and 
Upper Cape Fear aquifers lie beneath the following fifteen 
North Carolina counties: Beaufort. Carteret, Crcn-en, Duplin. 
Edgecombe, Greene, Jones. Lenoir Martin. OnsloM: Pamlico. 



1715 



NORTH CAROLINA REGISTER 



April 15, 1999 



13:20 



RULE-MAKING PROCEEDINGS 



Pitt. Washington, Wayne and Wilson. The Division 
recommends water use regulation take place in these counties. 
The Division 's recommendation is based on the 
following concerns: 

a. Water level drawdowns . Monitoring wells 
specifically designed to track water levels in the 
Black Creek and Upper Cape Fear aquifers 
show water level drawdown trends ranging from 
declines of one to eight feet per year Those 
monitoring wells are distributed throughout an 
8000 square mile portion of the Central Coastal 
Plain. 

b. Dewateritis . Water levels from water supply 
systems in several of these counties show 
draM'downs below the top of the aquifer by as 
much as 150 feet. DeM'atering is known to cause 
irreparable harm to the aquifer 's abilin- to yield 
water 

c. Current and projected water use . Current and 
projected water use reported through the Local 
Water Supply Planning process jG.S. 143-355(1) 
<& (m)l plus water use by other users have been 
compared to the estimated safe yield from the 
Black Creek and Upper Cape Fear aquifers. 
Projections through the year 2020 indicate a 
growing deficit in water supply It is clear that 



other sources of water must be developed to 
make up this deficit, 
d. .Alternate water sources . The location and 
nature of alternate water supply sources for this 
region of North Carolina, including surface 
water and the Castle Hayne aquifer make 
solutions to this problem more complex and 
extend the area affected by the problem. These 
other sources of water are limited due to water 
quality concerns in the lower Neuse and Pamlico 
River basins and inadequate access to the Castle 
Hayne aquifer for many of the affected water 
systems. 

Comment Procedures: The purpose of this announcement is 
to encourage those interested in this proposal to provide 
written comments. It is veiy important that all interested and 
potential affected parties make their views known to the 
Environmental Management Commission whether in favor or 
opposed to any and all provisions of the proposal being 
noticed. Written comments may be submitted to Nat Wilson. 
DEN R Division of Water Resources. PO Box 2^68^. Raleigh. 
NC 27611. telephone (919) 715-5445. 



13:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1716 



PROPOSED RULES 



This Section contains the text oj proposed rules. At least 60 days prior to the publication oj text, the agency published a 
Notice of Rule-making Proceedings. The agency must accept comments on the proposed rule for at least 30 days from the 
publication date, or until the public hearing, or a later date if specified in the notice by the agency The required comitieni 
period is 60 days for a rule that has a substantial economic impact of at least five million dollars ($5,000,000). Statutory 
ref'rence: G.S 1 50B-21.2. 



I 



TITLE 2 - DEPARTMENT OF AGRICULTURE 

Notice is hereby given in accordance with G.S. 150B-21.2 
that the North Carolina Board of Agriculture intends to 
amend rule cited as 2 NCA C 9K . 02 1 4. Notice of Rule-making 
Proceedings was published in the Register on January 15. 
1999. 

Proposed Effective Date: July I. 2000 

Instructions on How to Demand a Public Hearing (must be 
requested in writing within 15 days of notice): Any person may 
request a public hearing on the proposed rule by submitting a 
request in writing no later than May 1. 1999, to Dcnnd S. 
McLeod, Secretary, North Carolina Board of Agiculture, P. O. 
Box 27647, Raleigh, NC 27611. 

Reason for Proposed Action: Since the adoption of this 
Rule. Congress has pre-empted state standards of identity for 
food products that differ from federal standards. The portions 
of this Rule which establish standards of identity for lowfat 
and nonfat yogurt differ from federal standards and are thus 
pre-empted. 

Comment Procedures: Written comments may be submitted 
no later than May 17. 1999. to David S. McLeod, Secretary, 
North Carolina Board of Agriculture, P.O. Box 27647. 
Raleigh. NC 27611. 

Fiscal Note: This Rule does not affect the expenditures or 
revenues of state or local government funds. This Rule does 
not have a substantial economic impact of at least five million 
dollars (S5, 000. 000) in a 1 2-month period. 

CHAPTER 9 - FOOD AND DRUG 
PROTECTION DIVISION 

SUBCHAPTER 9K - SAMPLING AND 
TESTING OF MILK AND CREAM: 
FROZEN DESSERTS 



SECTION .0200 - FROZEN DESSERTS 



.0214 



STANDARDS OF IDENTITY 
FOR FROZEN YOGURT 

fa) Frozen yogurt is the food which is prepared by freezing 
while stirring, a pasteurized mix consisting of the ingredients 
provided for in ice cream and which ma\ contain other safe 
and suitable ingredients. Ail dair> ingredients are cultured 
after pasteurization by one or more strains of Lactobacillus 



bulgaricus and Streptococcus thermophilus. provided, 
however, fruits, nuts, or other flavoring materials may be 
added before or after the mix is pasteurized or cultured. 
Frozen yogurt, exclusive of any flavoring, contains not less 
than 3.25 percent milk fat, not less than 8.25 percent milk 
solids not fat, except that when bulky characterizing 
ingredients are used the percentage of milk fat is not less than 
2.5 percent. The finished frozen yogurt shall weigh not less 
than five pounds per gallon. The titratable acidity of frozen 
yogurt is not less than 0.5 percent, calculated as lactic acid, 
except if the frozen yogurt primary flavor is a non-fruit 
characterizing ingredient(s). This characteristic acidity is 
developed by the bacterial activity and no heat or bacteriostatic 
treatment, other than refrigeration, which may result in 
destruction or partial destruction of the organisms, shall be 
applied to the product after culturing. The product, when in 
package form, should be labeled according to applicable 
Sections of 2 NCAC, Chapter 9B, Subsection .0022(2) (21 
CFRPart 101). 

(b) Frozen lowfat yogurt i s th e food which i s pr e par e d by 
fr ee zing whil e s tirring, a past e uriz e d mix consisting of th e 
ingr e di e nts provided for in ic e cr e am and which max contain 
oth e r s af e and suitabl e ingr e di e nts. All dairy ingr e di e nts ar e 
cultur e d — aft e r past e urization — by on e or mor e — s trains of 
Lactobacillus bulgaricus and — Str e ptococcus thermophilus, 
provid e d, how e v e r, fruits, nuts, or oth e r flavoring mat e rial s 
may b e add e d b e for e or aft e r th e mix is past e uriz e d or 
cultur e d. — Froz e n low fat yogurt, e xclusiv e of any flavoring, 
contain s not l ess than 0.5 p e rc e nt nor mor e than 2 p e rc e nt milk 
fat, not l e ss than 8.25 p e rc e nt milk solids not fat. Th e finish e d 
yogurt s hall w e igh not l e ss than fiv e pounds p e r gallon. Th e 
titratabl e acid i ty of froz e n lowfat yogurt is not l ess than 0.5 
percent, calculat e d as lactic acid, e xc e pt if th e froz e n yogurt 
primarv flavor is a non fruit charact e rizing ingr e di o nt( 5 ). Th e 
characteristic acidity is d e v e lop e d by th e bact e rial activity and 
no h e at or bact e riostatic tr e atm e nt, oth e r than r e frig e ration, 
which may r e sult in d e struction or part i al d e struction of th e 
organism s , shall b e appli e d to th e product aft e r culturing. Th e 
product, wh e n in packag e form, should b e lab e l e d according to 
applicabl e sections of 2 NCAC, Chapt e r OB, Subs e ction 
.0022(2) (21 CFRPart 101). 

(-e4 Froz e n nonfat yogurt is th e food which is prepared by 
fr ee zing whi le s tirring, a pa s t e uriz e d mix consi s ting of th e 
ingredi e nts provid e d for in ic e cr e am and which may conta i n 
oth e r saf e and s uitabl e ingredients. All dairy ingr e di e nts ar e 
cultur e d aft e r pa s t e urization by on e or mor e strains of 
Lactobacillus — bulgaricu s — artd — Str e ptococcu s — th e rmophilus, 
provid e d, how e v e r, fru i ts, nuts, or oth e r flavoring mat e rial s 
may b e added before or aft e r th e mix is pasteuriz e d or 
cultur e d. — Froz e n nonfat yogurt, e xclusiv e of any flavoring. 



7777 



NORTH CAROLINA REGISTER 



April 15, 1999 



13:20 



PROPOSED RULES 



contains l e ss than 0.5 p e rc e nt milk fat, not les s than 8 .25 
p e rc e nt milk s olid s not fat. Th e finished froz e n yogurl shall 
w e igh not l es s than fiv e pounds p e r gallon. — Th e titratabl e 
aciditv' of froz e n yogurt is not l ess than 0.5 p e rc e nt, calculat e d 
as lactic acid, e xc e pt if th e froz e n nonfat yogurt primary flavor 
is a non fruit charact e rizing ingr e di e nt(s). This charact e ristic 
acidity is d e v e loped by th e bact e rial activity and no h e at or 
bacteriostatic tr e atm e nt, oth e r than r e frig e ration, which may 
r e sult in d e struction or partial d e struction of th e organism s , 
s hall b e appli e d to th e product aft e r culturing. — Th e product, 
wh e n — in packag e form, should b e — lab e l e d according to 
applicabl e se ction s of Chapt e r 9B. Sub se ction .0022(2) (21 
CFRPart 101). 



Authority G.S. 106-128: 106-253: 106-267. 

it'k'k-k'kitit'k'k'k-k'k'k'k'k'k-k'k'k'k 

Notice is hereby given in accordance with G.S. 150B-21.2 
that the North Carolina Board of Agriculture intends to 
amend rule cited as 2 NCAC 43L .0309. Notice of Rule- 
making Proceedings Mas published in the Register on January 
15. 1999. 

Proposed Effective Date: July 1. 2000 

Instructions on How to Demand a Public Hearing (must be 
requested in writing within 15 days ofriotice): Any person may 
request a public hearing on the proposed rule by suhtnitting a 
request in writing no later than May 1. 1999, to David S. 
McLeod. Secretary. North Carolina Board of Agiculture. P.O. 
Box 27647. Raleigh. NC 27611. 

Reason for Proposed Action: To provide additional 
revenues to meet increased operating expenses of Mountain 
State Fair 

Comment Procedures: Written comments men- be submitted 
no later than May 17, 1999, to Dm'id S. McLeod, Secretary. 
North Carolina Board of Agriculture. P.O. Box 2' 647. 
Raleigh. NC 27611. 

Fiscal Note: This Rule does not affect the expenditures or 
revenues of state or local government funds. This Rule does 
not have a substantial economic impact of at least five million 
dollars (S 5. 000.000) in a 12-month period 



Agricultural Center grounds during the North Carolina 
Mountain State Fair must pay the established admission fee, 
except persons holding worker's permits. One-time-only 
admissions will be issued to those persons who are employed 
by the fair or are asked to appear on the grounds by the fair 
management for a specific purpose relative to the operation of 
the fair. 

(b) The gates of the Western North Carolina Agricultural 
Center will open one hour prior to fair time and close one hour 
after closing of the fair midway each day of the fair. Opening 
of the fair midway and exhibit building may vary each day of 
the fair. 

(c) The Western North Carolina Agricultural Center 
Manager may operate a pass-out system at one or more of the 
outside gates during the fair. Persons exiting through these 
gates may, upon request, have their hand or vehicle stamped 
for readmittance through the same gate without additional 
charge. Readmittance must occur before 10:00 p.m. on the 
same day as pass-out or the hand stamp will not be honored. 

(d) Outside gate admission prices are as follows: 

( 1 ) adult/child, 1 3 years of age and over $4:OO $5.00 

(2) child, 6 through 12 years of age 2.00 

(3) child, under 6 years of age Free 

(4) senior citizen (age 65 and over) 2.00 

(e) Outside gate admission prices for advance ticket sales 
are as follows: 

(1 ) adult/child. 13 years of age and over $3^3# $4.00 

(2) child. 6 through 12 years of age 1.50 

(3) child, under 6 years of age Free 

(4) adult group sales purchasing a 

minimum of 40 tickets J^OO 3.50 

(5) senior citizen (age 65 and over) 1.50 
(0 The Western North Carolina Agricultural Center 

Manager may offer to exhibitors and concessionaires during 
the North Carolina Mountain State Fair a reduced rate for gate 
admission. If offered, such discount tickets ma\ be purchased 
from the administration office. Each discount ticket shall 
allow one admission during each day of the fair. These cards 
shall be non-refundable, whether used or not. and shall be used 
only by persons involved w ith concessions or exhibits, and not 
for general admission. The purchaser of said tickets shall 
furnish to the Western North Carolina Agricultural Center 
Manager a list of names to whom ticket will be issued. 

Authority' G.S. 106-530: 106-6.1. 



CHAPTER 43 - MARKETS 

SUBCHAPTER 43L - MARKETS 

SECTION .0300 - FEES: WESTERN NORTH 

CAROLINA HORSE 

AND LIVESTOCK FACILITY FEE SCHEDULE 

.0309 ADMISSION REGULATIONS 

(a) All persons entering the Western North Carolina 



Notice is hereby given in accordance with G.S. 150B-21.2 
that the North Carolina Department of .Agriculture and 
Consumer Sen-ices intends to adopt rides cited as 2 NCAC 54 
.0101 - .0105. Notice of Rule-making Proceedings was 
published in the Register on January 15. 1999. 

Proposed Effective Date: .July 1. 2000 

Instructions on How to Demand a Public Hearing (must be 



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PROPOSED RULES 



requested in wriling within 15 days of notice): Any person may 
request a public hearing on the proposed rules by submitting a 
request in writing no later than May 1, 1999. to David S. 
McLeod, A PA Coordinator, North Carolina Department of 
Agriculture and Consumer Services. Legal Affairs Office. P. O. 
Box 27647. Raleigh. NC 27611. 

Reason for Proposed Action: Session Law 1998-212. 
Section 13 5 created a grant program for purchase of animal 
waste management equipment by family-owned dairies. The 
legislation requires the Department of Agriculture and 
Consumer Services to adopt rules establishing guidelines for 
disbursing the funds. 

Comment Procedures: Written comments may be submitted 
no later than May H. 1999. to David S. McLeod, A PA 
Coordinator North Carolina Department of Agriculture and 
Consumer Ser\'ices. Legal Affairs Office. P.O. Box 27647. 
Raleigh. NC 27611. 

Fiscal Note: These Rules do not affect the expenditures or 
revenues of state or local government funds. These Rules do 
not have a substantial economic impact of at least five million 
dollars (S5.000.000l in a 12-month period 

CHAPTER 54 - GRANT PROGRAMS 

SECTION .0100 - WASTE MANAGEMENT 
EQUIPMENT GRANTS FOR DAIRIES 

.0101 PURPOSE 

The purpose of this Chapter js to estabhsh guidelines for 
disbursing grants to famiiv-owned dairy farms for the purchase 
of animal waste management equipment, pursuant to Section 
13.5 of Session Law 1998-212. 

Authority: SL 1998-212. s. 13.5. 

.0102 DEFINITIONS 

As used in this Chapter. 

(a) "Dairy cow" means a cow that js being used for milk 
production: 

(b) "Family-owned dairy farm" means a dairy farm that 
is owned or leased by one or more individuals who 
are actively invoked in tfie operation of the farm, or 
a dairy farm owned by a business entity which is 
controlled by such individuals. 

.Authority: SL 1998-212. s. 13.5. 

.0103 ELIGIBILITY 

Family-owned dairy farms which uere in operation prior to 
January f, 1998. and which have fewer than 300 dairy cows 
are eligible to apply for grants under this program. 

Authority: S. L 1998-212. s. 13.5. 

.0104 USE OF GRANTS 



Grants shall be used for the purchase of equipment that is a 
component of an animal waste management system and that is 
used solely for transporting, storing, or distributing animal 
waste. This equipment shall be limited to: pumps, spraying 
equipment, scrape blades, box blades, storage equipment, and 
any transport equipment, including tanks, spreaders, and 
applicators. Grants shall not be used to enlarge or maintain 
anaerobic lagoons. Grants shall not be used to purchase 
equipment in connection with the Agricultural Cost-Share 
Program administered by the Soil and Water Conservation 
Commission pursuant to G.S. 143-215.74. or in connection 
with any other government program. 

.Authority-: S L 1998-212. s. 13.5. 



.0105 AVAILABILITY AND AMOUNT OF GRANTS 

Availabilirv of grants is subject to appropriation of funds by 
the General Assembly. The amount of individual grants will 
be determined by the Commissioner of Agriculture based upon 
availability of funds, number of applications, and other factors 
necessary to ensure that funds are distributed in a fair and 



equitable manner. 

Authority S L 1998-212. s. 13.5. 



TITLE 4 - DEPARTMENT OF COMMERCE 

Notice is hereby given in accordance with G.S 150B-21.2 
that the Commerce Finance Center intends to adopt the 
rule cited as 4 NCAC II .0801. amend the rules cited as 4 
NCAC 11.0 101 -.01 02. .0201 -.0202. .0301 -.0302. .0402-.0404, 
.050I-.0503. .0-01 and repeal the rules cited as 4 NCAC 11 
.0303-.0304. .0401. .0405. .0601. Notice of Rule-making 
Proceedings was published in the Register on February 1. 
1999. 

Proposed Effective Date: .August 1. 2000 

A Public Hearing will be conducted at 10:00 a.tn. on Ma}- 5. 
1999 at the Education Building, Conference Room (#536), 5"' 
Floor 301 N. Wilmington. Street. Raleigh. NC. 

Reason for Proposed Action: For the Industrial 

Development Fund, rule changes arise from recent additions 
or changes to the William S. Lee .Act: increase in IDF funding, 
the allowance of 2% of the funds for grant administration, the 
addition of Tier Area designations, local government matching 
requirements specified, editorial changes needed to effect 
efficient administration of the program. 

Comment Procedures: Comments may be submitted 

through May 17, 1999 to the North Carolina Department of 
Commerce, Commerce Finance Center 301 N. Wilmington 
Street, PO Box 29571, Raleigh, North Carolina 27626-0571, 
and the contact person is Charles Johnson. 



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Fiscal Note: These Rules. 4 NCAC II .0101. .0202. .0302. 
.0402. .0501 -.0505. do affect the expenditures or revenues of 
local government funds and the expenditure or distribution of 
State funds subject to the Executive Budget Act. .Article I of 
Chapter 143. These Rules do not have a substantial economic 
impact of at least five million dollars ($5,000,000) in a 12- 
month period. 

Fiscal Note: These Rules. 4 NC.4C II .0102. .0201. .0301. 
.0303-.0304. .0401. .0403-.0405. .0601. .0701. .0801. do not 
affect the expenditure or distribution of State funds subject to 
the Executive Budget Act. Article I of Chapter 143. These 
Rules do not have a substantial economic impact of at least 
five million dollars (S5.000.000) in a 1 2-month period. 

CHAPTER 1 - DEPARTMENTAL RULES 



tbj 



EMERGENCY ECONOMIC DEVELOPMENT 



SUBCHAPTER 11 



INDUSTRIAL DEVELOPMENT 
FUND 



SECTION .0100 - PURPOSE AND DEFINITIONS 

.0101 BACKGROUND AND OBJECTIVES 

(a) BASIC — The purpose of the North Carolina Industrial 
Development Fund (al s o to b e known as th e Indu s trial 
Building and R e novation Fund) is to assist local town , cit} or 
counts' governments with incentive industrial financing l ocat e d 
in the mo s t e conomically d e pr es s e d counti e s in th e stat e , in 
areas ot" the state that have been designated as eligible tier 
areas by NC General Statutes. This assistance will b e is 
intended to help tho se units of gov e rnm e nt cr e at e n e w job s by 
providing financing for th e r e novation or improvem e nt and 
e xpansion of manufacturing or indu s trial buildings s o a s to 
induc e "privat e profit making " e ntiti e s to occupy, by lease or 
purchas e . — and — te — op e rat e — manufacturing — or — industrial 
bu s in e ss es , units of government offer to jts new and expanding 
industry, new or improved infrastructure, or funds for building 
renovation and equipment jn exchange for commitments to 
create new, full-time jobs in industries currently eligible under 
NC General Statutes. (The fund is not designed to be used for 
the acquisition of land and buildings or constructing new 
buildings.) If the assistance js used for infrastructure, it shall 
be granted to local governments with no repayment: however. 
if it is used to purchase equipment or to renovate industrial 
buildings, then the funds must be repaid. But whether a grant 
or a loan, the amount of funds to be made available for a 
project shall be determined by tlie number of new jobs 
committed, with a maximum job limit and project limit as 
currently authorized for the program by NC General Statutes. 

fb) — Th e obj e ctiv e of thi s program will b e to provid e now 
full time job s for North Carolina citiz e n s . Th e D e partm e nt will 
nec e ssarily d e t e nnin e that th e r e novations and improv e m e nts 
ar e a nec es sary part of th e privat e finns d e ci s ion to provid e th e 
n e w jobs, if it is d e t e rmin e d that the privat e finn would hav e 
(or ha s alr e ady b e gun to) s p e nd privat e mon e y to mak e th e se 
r e novat i ons and cr e at e th e s e jobs, no funds from this program 
will b e e xp e nd e d. 



ASSISTANCE — This special assistance from the Industrial 
Development Fund, which is used at the discretion of the 
Secretary, is available to units ot" government that have, or 
shall imminently experience, a loss of 500 or more 
manufacturing jobs in the county, or a number of 
manufacturing jobs equal to at least ten percent of the 
manufacturing workforce in tlie county. Where a unit of 
government relies on tlie 500 jobs loss as the threshold for 
obtaining this special assistance, it must submit convincing 
evidence that the loss seriously impacts the counr^'s economy, 
taking into account the county's tier ranking under .0701 of 
this Subchapter. The funding obtainable under this emergency 
assistance category shall not necessarily be determined bv the 
number of new jobs to be created, although the project should 
lead to new jobs, or save jobs, or both, and help alleviate a 
jobs dislocation problem. The Secretary shall detennine the 
amount of funds for a project, ug to tlie maximum currently 
authorized for the program by NC General Statutes. This 
assistance shall be jn thie form of a low interest loan to the 
governmental unit, amortized over five years with repayment 
beginning at the end of the second year. 

(cj UTILITY ACCOUNT — Within the IDF structure, the 
Utility Account provides financing to units of government for 
jobs creation and investment jn tlie tier area(s). and for 
benefiting firms currently authorized bv NC General Statutes. 
Funds may be used for construction or improvements to water, 
sewer, gas, or electrical utilit> lines and equipment for existing 
or proposed industrial buildings. There is no specific amount 
of funding specified for each new job or project, but the 
impact of tlie funding should lead to tlie creation of new jobs 
and new investment. As with basic IDF financing, if Utility 
Account funds are spent for public property, the assistance 
shall be a grant; for private property, it shall be a loan. 

(dj CLEAN WATER BONDS PROCEEDS - Clean Water 
bonds proceeds from the IDF shall be used to make grants to 
local government units to gay tlie cost of clean water projects 
for economic development with regard to tfie locating of 
industry to. and the expansion of' industry in tfie State. These 
funds shall be administered in tfie manner permitted in the 
Basic IDF and tfie Utility Account except the following 
limitations shall apply: 

( 1) The funds shall be used for grants: not loans. 

(2) Grants shall be made only for projects that will have 
a favorable impact on tjie clean water objectives of 
the State. 

(3) Projects shall be located jn economically distressed 
counties or those that have a population of less than 
50.000 determined from the data derived at tfie time 
of the last December ranking of economically 
distressed counties. 

(4) Grants may be made only with respect to the 
industries specified by tjie Clean Water and Natural 
Gas Critical Needs Bond Act of 1 998 as amended. 

(5) The water or sewer utility lines or facilities for 
which bond funds are disbursed shall not necessarily 
be located on tlie sjte of a building or proposed 
building at yvhich an industrial activity occurs if the 



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utility lines or facilities will further the clean water 
objectives of the State. 



to ail parts of the Industrial 



Authority G.S. 143-437.01. 

.0102 DEFINITIONS 

These definitions apply 
Development Fund including the Basic Emergency Economic 
Development Assistance, Utility Account and Clean Water 
Bonds for Economic Development: 

(a) "D e partm e nt" m e ans th e D e partm e nt of Economic 

a nd Community ' Dev e lopm e nt, or its S e cr e tary. 
(1) "Department" means the North Carolina Department 
of Commerce, or its Secretary. 
f^ "Act" m e ans Section 1 1 1 Part XXll of th e con s olidat e d 
budg e t act codifi e d as Chapt e r 830 of th e 1987 S ess ion Laws 
and am e nd e d bv G.S. 143B ' 137A. 1Q80. 



G.S. 105-129.3. 

(6) "Unit of Government" means a town, city or county 
of the state. 

(7) "Full-time Job" means a job that requires at least 
1 600 hours of work in a year. 

(8) "Infrastructure" means utilities, typically referred to 
as "public utilities." or a rai] spur where there is 
public ownership of the rail property. 

(9) "Grant" means money given to a unit of government 
to gay for an economic d evelopment project and 
does not have to be repaid, if the terms of the grant 
are fulfilled, i.e. the jobs commitment is met. 

(10) "Loan" means money loaned to a unit of government 
to pay for an economic development project, to be 
repaid bv the borrower based on an amortization 
schedule approved by the Department. 

fg) "Proj e ct" m e ans on e or mor e activiti e s propos e d for 



(e) "Applicant" m e ans a unit of city gov e rnm e nt locat e d in a funding, or for partial funding, under this Rul e . Such a proj e ct 



will b e d es crib e d — in a narrativ e and accompani e d by a 

pr e liminary s e t of drawings which set out th e e xact factual 

situation and a d e tailed sch e dule of cost s from a contractor or 

e ngin ee r. The s ch e dul e mu s t constitut e an ability to compl e t e 

{4^ "Indu s trial Developm e nt Fund" m e an s th e appropriation such proj e ct with no mor e than a t e n perc e nt conting e ncy. All 

of moni e s giv e n to th e D e partm e nt for th e s e purpos e s. This such proj e ct material will provid e e valuations of pot e ntial for 

fund will also b e known as and r e f e rr e d to a s th e Industrial unusual s it e charact e ristics which might i nflu e nc e con s truction 



qualifi e d county or a unit of county gov e rnm e nt which m ee ts 
th e d e finition of a qualified county. 

(2) "Applicant" means a North Carolina unit of 
government that applies for IDF funds. 



Building Renovation and Improv e m e nt Fund . 

(3) "Industrial Development Fund" as referenced m 
G.S. 143B-437.01 means the fund within the 
Department's fiscal structure jn which the 
appropriation of monies for industrial development 
projects is received and disbursed. 

(4) "IDF" means the Industrial Development Fund. 

(e) "Qualifi e d County" — m e ans on e of th e 50 most 
e conomically d e pr e ss e d counti e s in th e s tat e . Th e S e cr e tary of 
th e D e partment shall d e t e rmin e which counti e s ar e th e most 
e conomically d e pr e ss e d counti e s in th e s tat e bas e d on: rat e of 
un e mploym e nt, p e r capita incom e , and r e lativ e population and 
work forc e growth or lack of growth, as d e termin e d by th e 
S e cr e tary. Th e figur es us e d in making this comparison and th e 
d e lin e ation of "most" and "l e a s t" will b e th e lat e st availabl e 
p e r capita incom e figures by county, as docum e nt e d in a 
publi s h e d form by any Stat e or F e d e ral Ag e ncy g e n e rally 
r e cogniz e d as having e xp e rti se and — cr e ditability in th e s e 
fi e ld s . 

ff) "Em e rg e ncy As s i s tanc e Qualifi e d Counts" m e an s any 
count^ ' which is facing th e thr e at of. or which i s e xp e ri e ncing a 
major e conomic dislocation. A major e conomic dislocation 
would m e an the actual or immin e nt los s of manufacturing jobs 
caused by on e or mor e plant clo s ing(s) or on e or mor e 
announc e d plant layoff(s) which aff e ct: 
fH at l e a s t 500 jobs: or 

{¥> a number of jobs which is e qual to or exceeds ten 
p e rc e nt of th e e xi s ting manufacturing work forc e . 
In th e cas e of Subparagraph (f)(2) of th e Ru le , the numb e r of 
jobs impact e d mu s t e xc ee d 50. 

(5) "Eligible tier areas" means the aggregation of North 
Carolina counties into groups m uhich certain 
economic benefits apply, as currently authorized by 



or op e rating costs. In e ach cas e , th e proj e ct d e scription will 
docum e nt th e dir e ct r e lationship betw ee n th e proj e ct and th e 
jobs cr e at e d. 

(11) "Project" means an activity proposed for IDF 
funding, h shall be described narratively jn an 
application and accompanied by a preliminary set of 
drawings, or sketches. _or other data that present the 
project in factual detail, together with a schedule or 
itemization of costs from an engineer or contractor. 
The schedule of costs shall constitute the ability to 
complete a project with no more than a K) percent 
contingency. 

{i) Proj e ct e xpenditur e s for e xisting buildings may includ e : 

(12) Project expenditures may include: 
(a) For basic IDF — 

(i) the construction of. or improvements to 
e xisting water, sewer, gas or electrical 
utility systems, distribution lines, or 
required storage facilities, or a raji spur 
when either is publicly ovsned and 
operated, and or: 
(ii) the renovation of buildings to includ e 
including structural repairs, structura l 
improv e m e nts — sueh — as roof r e pair, 
repairs, addition of docks, er — the 
erection of walls, or s p e cial structural 
supports to support cran es for heavy 
equipment, electrical upgrades, or 
HVAC upgrades; 
(iii) improvements to th e building that are 
necessary to make the a building 
suitable for the occupancy of th e 
building by the — occupant — awd the 



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PROPOSED RULES 



operator of the project. Such 
improvements may include mechanical 
equipment such as heating er and air 
conditioning equipment, plumbing, 
pipes or trenching to handle effluents 
or process water, special electrical 
additions necessary for ov e ns, furnac e s 
or oth e r proc e ssors and lighting. If a 
renovation — er an improvement is 
critical to the operation of a particular 
manufacturing or indu s trial busin esses 
business , or. if s uch improv e m e nts ar e 
or is critical to the decision making 
process pertinent to the creation of 
suehjobs. the actual improvement need 
not be located on the site of the 
i ndu s trial main project building. If, 
however, a grant of funds js involved, 
the improvement must be constructed 
on public right-of-ways or on property 
which the unit of eovemmeni has an 
easement to treat as U normally would 
owned 



do as if it o wned the property. 
However. when extending 
infrastructure to a flnn. IDF assistance 
ends at the private property line. SttH 
In either situation , the application must 
document the exact relationship ef 
between the jobs and the project. An 
example of a fundable project would 
be the case where a the unit of 
government must construct an elevated 
water tank and service wat e r lines to 
provide water to a building so as to 
provid e sprinkl e r water to a building 
where such service is directly required 
to operate the an industrial er 
manufacturing business. An example 
of an unfundable project would be 
where a unit of government seeks to 
expand or to repair its water utility (or 
other infrastructure) system and where 
the relationship to the creation of jobs 
is fairly general or indir e ct vague . The 
project wtH shall be described m from 
the perspective of employment to be 
created in th e and its impact ar e a of to 
the project. Dir e ct and indirect jobs 
wtW — be — tr e at e d — s e parat e K — m — the 
di s cu ss ion. Th e op e rator of th e proj e ct 
will provid e d e tail s as to th e natur e of 
dir e ct jobs cr e at e d, including th e s ki l ls 
r e quir e d, work conditions, wag e s paid 
and s e asonal influ e nc e s on th e numb e r 
of work day s p e r y e ar. 
fD) the installat i on ef — e>r purchas e ef 

manufacturing e quipm e nt er proc e ss 

production s e quipm e nt. 



(iv) the purchase and installation of 

equipment that is associated with the 

industrial classification of the project. 

(34 In th e cas e of counti es d e signat e d a s "s e v e r e ly 

d e pr e s se d". — proj e ct — e xp e nditur es — meff — includ e 

con s truction of or improvement to n e w or existing 

wat e r, se w e r, gas. or e l e ctrical utility distribution 

lin e s — or e quipm e nt to — s e rv e n e w — or propo se d 

industria l buildings to b e us e d for manufacturing 

and indu s trial op e rations. Such infrastructur e shall 

b e located on th e sit e of th e bui l ding or dir e ctly 

r e lat e d to th e specific manufacturing activity. 

(b) For Emergency Economic Development 
Assistance — Loans to local units of 
government for economic development 
projects designed to create jobs, lead to the 
creation of jobs, or save jobs, and to assist m 
alleviating the economic dislocation created 
by the loss of jobs. 

(c) For the Utility Account — 

li) the construction of. or improvements to 
water, sewer, gas or electrical utility 
systems, distribution lines, or required 
storage facilities, or a rail spur or rail 
line when either js publicly owned and 
operated, and or: 
(ii) equipment for existing or proposed 
industrial buildings for operations m 
the industrial classifications that are 
currently eligible to receive Utility 
Account funding within the tier area. 
(e) "R e novation" shall hav e th e sam e m e aning as proj e ct, as 
d e scrib e d in Paragraph (g) of this Rul e . 

{f) "S e cr e tary " m e ans th e S e cr e tary of th e Departm e nt, or 
his d e signee. 
(g) "State" m e ans the Stat e of North Carolina. 

(d) For Clean Water Bonds — 

(i) the construction of or improvements to 
new or existing water or sewer 
distribution lines or equipment, 
the construction or improvements to 
new or existing wastewater treatment 
facilities, or 

improvements that will expand the 
capacity of existing wastewater 
treatment facilities or water supply 
systems. 
"State" means the State of North Carolina. 



(ii) 



(iii) 



(13) 



fk) "Sev e r e ly D e pressed" counties m e ans tho se counti es so 
designated und e r G.S. 105 130.10(c) or G.S. 105 l51.17(c)or 
unit s of gov e rnm e nts within thos e counti e s. 

( 14) "Application" means the pages of documents [n 
which an applicant for IDF funds identifies itself 
describes a project, specifies the funds required, 
provides a breakdown of project costs, and submits 
the benefiting firm's commitment to create jobs and 
evidence of its credit worthiness. 

(15) "Local Matching Funds" means funds of a unit of" 



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PROPOSED RULES 



government contributed to an economic 
development project for the purpose of assisting in a 
total financing package and earning (or winning) 
other funds bv doing so. Matching js usually 
expressed as a ratio, i.e. one local dollar for three 
state dollars, or one for three. 

(16) "Local Matching Requirement." The Department 
requires local matching in grant projects except for 
Emergency Economic Development Assistance 
projects and those located in a tier area that has been 
exempted from matching by NC General Statutes. 
The required rate shall be one for three, or one local 
dollar for each three state dollars. 

(17) "Participation Loan" means a loan between at least 
three parties, to wit: A bank or financial institution. 
the private firm, and the unit of government. The 
essence of a participation loan js that the bank, or 
financial institution, and the unit of government 
shall share at least equally in the lending 
arrangements, meaning the money loaned and the 
risk involved and collateral shared. 

(18) "Borrower" means the private firm identified in a 
participation loan for building improvement or 
equipment in ttie basic IDF, or thie unit of 
government when the money is spent for emergency 
economic dislocation assistance or when the money 
is reloaned in a utility account project. AdditionalK. 
the unit of government shall be the borrower when 
IDF is used to assist local matching, or rn other 
cases when the Department believes the project can 
be more prudently structured as a loan rather than a 
grant. 

(19) "Preapplication Conference" means a meeting held 
at thie Department to discuss a proposed IDF 
application and includes: a representative of 
Commerce Finance Center; the applicant; an official 
of the benefiting firm; and a banker, if a 
participation loan is involved. A preapplication 
conference may be waived when the total IDF 
expenditures are expected to be fifty thousand 
dollars (S50.000.00> or less. 

(20) fH "Clean Water Objectives of the State" include: 
moans providing cl e an wat e r in North Carolina by: 






Reducing the reliance on wells, septic tanks 
and similar facilities; 

Allowing residences, businesses, or local 
governments not otherwise served bs water or 
sewer or wastewater infrastructure to connect 
into a distribution line or system (for water 
supply, sewer, or wastewater) being furnished 
in an economic development project for new 
or expanding industry. 



Authority G.S. 105-129.3. N3B-I37.0I. 

SECTION .0200 - GENERAL REQUIREMENTS 
.0201 DATE OF RECEIPT OF APPLICATIONS 



The Department of Comm e rc e will shall receive applications 
after November 15, 1987 on a first-come, first-serve basis. An 
application Applications w+H shall be assigned a processing 
ease number when that application it is received and is judged 
to b e sufficiently complete for consideration. Wh e r e When 
possible, applications will shall be processed in the order of 
the processing numbers assigned. 

Authority G.S. 143B-43'7.01. 

.0202 APPLICATION CATEGORIES AND 
REQUIREMENTS 

fa) Applicants can apply for funding und e r differ e nt grant 
categori e s, including th e cat e gori es of 

(44 utility improv e m e nts or additions own e d by public 
bodi e s; 

(5) utility improvem e nt s or additions own e d by privat e 
e ntiti es ; 

(44 indu s trial faciliti e s ovNTi e d by public bodies but 
b e ing l e a se d or b e ing improved for imm e diat e or 
d e lay e d sale to private op e rators, or to privat e 
"arms l e ngth" landlord s ; 

(4) industrial and manufacturing faciliti es own e d by 
privat e "non profit" e ntiti e s such as "Community 
D e v e lopm e nt Corporation s " or Committ ee s of 100" 
fund e d andor e ndors e d by th e e l e ct e d l e ad e rship of 
th e unit of Gov e rnment; and 

(4) indu s trial and manufacturing faciliti e s own e d by 
"for profit" e ntiti e s to b e improv e d by funds loan e d 
to th e private "profit making" e ntity by a unit of city 
or county gov e rnm e nt . 

(a) Applicants ean ma\ appK for funding under diff e r e nt 
categories, including: the following categories: 

ID Basic IDF; 

(2) EmergencN' Economic Development Assistance; 

(3) The Utiliu Account; 

(4) Clean Water Bonds Proceeds . 

(b) There is no set minimum grant amount of funding which 
applicants may request er to be awarded. If there are practical 
difficulties about a small amount or cost disadvantages, these 
\Nill be discussed with the applicant in a preapplication 
conference. Grant IDF awards shall not exceed the total 
amount sp e cifi e d appropriated by the General Assembly in its 
appropriation process. Chapt e r 8 30 of th e 1987 S e ssion Laws, 
in S e ction 111, Paragraph (2), limit e d th e maximum grant to a 
sum not to e xc ee d th e l e s se r amount the two hundr e d fifty 
thousand dollar s (S250,000). or a total of twelve hundr e d 
dollars (SI. 200) for e ach job cr e at e d. For basic IDF. 
Emergency Economic Development Assistance, and Clean 
Water Bonds Proceeds, per job or per project maximum 
funding limitation will l^e thie amounts established under 
current law. There js no maximum set for Utility Account 
funding; but the amount ot' awards will be determined by the 
Secretar\. For th e purpos e of thi s S e ction basic IDF. the per 
job limitation shall be impos e d applied on the basis of 
requiring a commitment from the occupying industrial or 
manufacturing firm operator of tlie business as to the number 
of jobs it will cr e at e that shall be created over a reasonable 



1723 



NORTH CAROLINA REGISTER 



April! 5, 1999 



13:20 



PROPOSED RULES 



period of time, not to exceed three years. The number of jobs 
cr e at e d will includ e only thos e p e opl e directly e mploy e d i n 
perman e nt or seasonal jobs by th e op e rator who occupi e s th e 
■ facility; indirect and t e mporary jobs will not b e includ e d. 
Those will be permanent, full-time jobs; no temporary or 
contract jobs. 

(c) Wh e n a proj e ct r e novation or improv e m e nt i s to b e 
accomplished to a building or on a sit e own e d by a privat e 
entity, wh e th e r th e private entity is conduct e d on a "for profit" 
or on a "not for profit" basis, th e proj e ct will b e financ e d by a 
loan to that privat e e ntity. This loan v s il l b e mad e to th e privat e 
entity by the local unit of gov e rnm e nt with funds made 
ava i labl e from this program. In e ach cas e , th e local unit of 
gov e rnment will — es tablish — its own — authority' to — do that 
financing. The applicant will r e quir e and provid e to th e 
D e partm e nt of Comm e rc e sati s factory documentation that all 
costs ar e r e asonabl e and that all fund s are to be exp e nd e d with 
regard to th e conflict of int e r e st statutes regulating bu s in e ss 
transactions b e tw ee n gov e rnm e nt officials and oth e r involv e d 
parti e s. — The — applicant — wtW — propo se — a — pten — of proj e ct 
satisfactory for th e D e partm e nt of 



administration which k 
Comm e rc e . 



(d) All funds e xp e nd e d which dir e ctly as s ist participating 
privat e e ntiti e s mu s t b e r e paid to grant recipients and then 
returned to th e D e partm e nt of Comm e rc e as such r e paym e nts 
ar e r e c e ived. Such r e paid fund s will not b e r e turn e d to th e 
G e n e ral Fund, but se t a s id e to fund n e w proj e cts approv e d 
und e r this Subchapt e r. G e n e rally, proj e ct grants cla s sifi e d 
und e r Ru le .0202 (a) (I) will not b e r e paid. R e paym e nt for 
proj e ct s — otherwis e — classifi e d — may — be — giv e n — subord i nat e 
collat e ral positions, int e r e st costs which ar e at l e ss than mark e t 
rat e s, or amortization which d e f e rs cash flow, in so long as 
r e qu es t s are docum e nt e d as n e c e ssary to th e cr e ation of jobs 
and th e s ucc e ss of th e proj e ct. 

( e ) A proj e ct will b e s ubject to r e view b> the D e partm e nt of 
Comm e rc e at any tim e during th e fir s t thr ee years aft e r the 
proj e ct b e gins. For a proj e ct cla s sifi e d und e r Rul e .0202 (a) (2) 

(3) ( 4 ) and (5) of this Rul e , any r e paym e nt balanc e that it ow e s Authoril}' G.S. 143B-437.01. 



this means that if the bank takes a certain collateral position, 
the unit of government shall share m that position. If either an 
out-of-state bank or a financial institution other than a bank js 
used in a participation loan, that must be approved by the 
Department. 

(e) IDF funds may be provided to a unit of government to 
meet matching funds requirements. In this case the 
Department shall furnish a loan repayment schedule to the 
mayor, city manager or county manager, which, m addition to 
the award letter and application, will establish the 
responsibility for repayment, and times and amounts of 
repayment. 

(f) Loans for Emergency Economic Development projects 
shall be accomplished as in Paragraph (d) of this Rule. 

(g) Loans for Utility Account projects will be accomplished 
as in Paragraph (d) of this Rule. 

(h) With either grants or loans, the Department shall require 
financial information from the project owner or operator to 
establish financial capability. The usual requirement will be 
the preceding three years' financial and operating statements; 
for new businesses, at least three years pro forma statements 
and a business plan. In any case, the Department may use 
credit reports, bank information, or other data that it deems 
appropriate to establish the credit worthiness of the borrower. 

tij A project will be subject to review by the Department at 
any time during the first three years after the project begins. 

y ) The Department may require a unit of" government to 
partially or fully accelerate loan repayments if the operator's 
business has closed, moved, or if thie company has not made 
reasonable progress toward its jobs creation commitment. The 
Department may require repayment of a grant, partially or 
fully, if thie operating company has moved, closed, or hias not 
made satisfactory progress towards its jobs creation 
commitment; and, in tfie case of Emergency Economic 
Development Assistance or the Utilits' Account, if funds are 
not spent in the manner for which they were approved. 



the — l ocal unit of gov e rnm e nt may b e partii 



-ftiHy 



acc e l e rat e d if th e bu s in e s s has clos e d, or if th e op e rating 
company has not mad e r e a s onabl e progr e s s towards its job s 
cr e ation goal. 

(c) The Department may authorize a local unit of 
government that receives IDF funds to use up to two percent 
of the funds to verify that expenditures are made fn accordance 
with the law and rules and to otherwise administer the IDF 
project. 

(d) Under basic IDF, improvements to building properties 
and equipment purchases (either of which becomes private 
property) shall be loan projects and will be accomplished with 
participation loans. The three parties to a participation loan 
shall be: the borrower's North Carolina bank, the borrower, 
and the unit of government. The bank and the unit of 
government (using I DF funds) shall be at least equal 
participants, sharing equally jn the funds provided and in the 
risk and collateral involved. The bank, however, rnay supply 
more money than just matching IDF; in thus case, the bank's 
pro rata share is larger. Also, in tlie matter of sharing equally. 



SECTION .0300 - SELECTION PROCESS 

.0301 REVIEW OF APPLICATIONS AND FUNDING 

(a) Applications w+H shall be submitted in a manner 
prescribed by the Department. Selection of applications for 
funding wtH shall be based primarily on information contained 
in the application. Thusly th e application application, yvhich 
must provide sufficient information so as to allow the 
Department to rate it against the s e l e ction approval criteria. 
When an application is deemed complete, it w4H shall be 
assigned a processing ease number. 

(b) Applications for funding of Em e rg e ncy A s si s tanc e 
proj e cts may be submitted directly to the Secretar> of the 
Department. They may also be submitted to the Department's 
Commerce Finance Center. Room 2171. Dobbs Building. 430 
N. Sali s bury Str ee t. Post Office Box 29571. 301 North 
Wilmington Street. Raleigh. North Carolina 2761 1. 27626- 
0571. Th e D e partm e nt will maintain a pol i cy that appl i cation s 
Applications shall be approved or denied by the last day of the 



13:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1724 



PROPOSED RULES 



calendar month following assignment of a processing ease 
number as s e t out in Rul e .0201(a). number. When possible, 
applications wiH shall be processed in the order that ease 
processing numbers are assigned. 

Authorit}' G.S. 143B-437.0I. 

.0302 ELIGIBILITY REQUIREMENTS 

Applications wtW shall show that: 



(1) 



(2) 



(3) 



(4) 



(5) 



16] 



m 



18] 



That this funding is a vital part of the proposal to 

create the jobs set out and that the jobs wtH shall not 

be created if the project goes unfunded, and 

That the project is completely funded or financed, 

except for the particular funds sought in the 

application, and 

The the involvement of the local unit of government 

is formally authorized by its elected board under 

specific resolution and by specific State Statute, and 

The the participating private entity m«st provid e 

provides a 4etter statement of commitment relating to 

the project. That l e tt e r commitment wtW shall state 

that the project is to be carried out as described in 

the application, with specificity as to time schedules 

and to the parties involv e d, involved, and 

the expenditure of private money on the project has 

not begun, and 

the project has not yet begun, i.e. money spent on 

the project, or public announcements made that the 

benefiting firm plans to do the project before the 

Department has been requested to participate with 

IDF. 

For Emergency Economic Development Assistance 

Projects, there exists an emergenc\ in the economy 

large enough to be considered an economic 

dislocation as set out m OS, 143B-437.01 (a)(la). 

and 

The project for which funding js sought might help 

to alleviate the economic emergency described m 

Subparagraph (7) of this Rule. 



Authority G.S. 143B-43'.0I. 

.0303 REVIEW: APP/FUNDING/EMGCY ASST 
PROJ DEFINED/RULE .0102(h) 



Rul e .0102(h) will s how that: 

{M th e e conomic e m e rg e ncy e xists, or is imminent, and 
(2j the — proj e ct will, or will t e nd to. all e viat e th e 

e sp e cially s e v e r e e conomic e m e rg e ncy caus e d by th e 

d e scrib e d e conomic dislocation. 

Authority Section LX of Chapter 754, 1989 S.L 

SECTION .0400 - APPROVAL CRITERIA 

.0401 GENERAL 

In ord e r for th e Department to approv e a proj e ct, or an 
"Emerg e ncy As s istonce proj e ct", th e S e cr e tary is r e quir e d to 
mak e — c e rtain — finding s — n e c e ssary — te — docum e nt — that — (he 
D e partm e nt i s conducting th e duti e s sp e cifical l y given to it in 
Chapt e r 8 30 of th e 19 8 7 Session Laws, thos e duti e s e xpr es s e d 
m — oth e r General — Statut e s, and in — Rul e .0^102 of th e s e 
proc e dur e s, in a r e sponsibl e and prud e nt mann e r. 

Authority Section 111 of Part XXII Chapter 830. 1987 Session 
La\ss: Section LX of Chapter 754. 1989 S.L. 

.0402 REQUIRED FINDINGS 

(a) Before the Department ean shall b e gin to mak e th e 
approval as sp e cifi e d in G.S. Chapt e r 830. approve a project, a 
finding must be made that the project: 

(1 ) Will w+h shall assist a unit of Government in one of 
the most e conomically d e pr es s e d counti es eligible 
tier areas of the Stat e State: a s m e a s ur e d by m e dian 
per capita incom e , and 

(2) The the funds wih shall be used for renovation of 
building s buildings or infrastructure or equipment te 
b e us e d in manufacturing and industrial op e rations 
curr e ntly e ligibl e und e r NC G e neral Statut e s by 
firms that have industry classifications currently 
eligible for tax incentives under G.S. 105-129.4. 

(b) The s e cr e tary Department wih shall docum e nt, 
document a finding based on data provided to him e ith e r in the 
application or by staff research, that the jobs to be created by 
this a proj e ct project, over no more than a three year period, 
w+tt shall be large enough in number to have a measurable 
favorable impact on the area immediately surrounding the 
project and wih shall be commensurate with the size and cost 
of the grant to the project. Th e D e partm e nt will us e as a 



Applications for funding for proj e ct s d e fin e d in Rule .0102 guid e lin e , a s tandard of r e quiring on e job sav e d or generat e d 



(h) will show that: 

f-H Th e r e e xi s ts an e m e rg e ncy in th e e conomy larg e 

e nough to be consid e red an e conomic dislocation a s 

s e t out in G.S. 113B 4 37(d) and. 
(3-) That th e proj e ct for which funding is sought might 

h e lp to all e viat e th e e conomic e m e rg e ncy d e scrib e d 

in Subparagraph (1) of this Rul e . 

Authority Chapter 754. 1989 SL 

.0304 ELIGIBILITY REQ/EMGY ASST PROJ 
DEFINED/RULE .0102(h) 

Application for Em e rg e ncy Assistanc e proj e ct s d e fin e d in 



for e ach on e thousand two hundr e d dollars (SI. 200) in grant 
financing. The applicant has the burden of demonstrating that 
the jobs wtH shall have a measurable impact on the county. 
The applicant must show by clear and convincing evidence the 
number and type of such jobs generated. 

(c) The se cr e tarv' Department w4h shall make a finding that 
the operator of the proposed project has demonstrated the 
capabilities to operate such a facility. The applicant has the 
burden of showing that capability exists in the operator to 
operate and maintain the facility efficiently and effectively. 
Financial strength and prior related experience by the operator 
shall be giv e n gr e at w e ight, evaluated. Where little or no pr i or 
experience can be demonstrated, the qualifications of 



) 



1725 



NORTH CAROLINA REGISTER 



April 15, 1999 



13:20 



PROPOSED RULES 



management, including production or engineering staff, as 
applicable, shall be of gr e at prime significance. 

(d) The s e cr e tary Department wi+l shall make a finding that 
the IDF financing of such for a project by th e authorit\ w+U 
shall not cause or result in the abandonment of an existing 
similar industrial or manufacturing facility of the proposed 
operator of an affiliate elsewhere in the State unless the facility 
is to be abandoned because of obsolescence, lack of available 
labor, or site limitations. The Department shall consider an 
abandonment statement as prima facie proof of lack of 
abandonment. 

(e) For EmergencN Economic Development projects, the 
Department shall make a finding that: 

(1 ) the economic emergency exists, or is imminent, and 

(2) the project shall, or shall tend to, alleviate the 
especially severe economic emergenc\' caused by the 
described economic dislocation. 

(f) For Utility Account projects, the Department shall make 
a finding that the proposed funding should create new jobs or 
reasonably be expected to lead to the creation of neu jobs m 
the industries currently eligible for Utility Account financing 
assistance as specified in G.S. 143B-437.01 (bl). 

fe) The D e partm e nt shall us e th e d e finitions of t e rms found 
in S e ction .0200 of thi s Subchapt e r to mak e th e s e finding s . 

(g) For Clean Water Bonds projects, the Department shall 
make a finding that the proposed project will have a favorable 
impact on the Clean Water Objectives of" the State. 

(h) The Department shall use the definitions of terms found 
in Rule .0102 ot" this Subchapter to make these findings. 

Authority G.S. 143B-437.01. 

.0403 FORMAL APPLICATIONS PROCEDURES: 
DENIAL 

(a) Unless the applicant has met its various burdens of 
proof, the secretary Department shall not make his ttie required 
findings. 

(b) All finding s shall b e in writing and wh e r e Where 
adverse findings are made, they shall specifically indicate in 
detail which elements of proof were weak, the required 
conclusions which could not be mad e made , and any 
suggestions for amending the application. 



DEFINED/RULE .0102(h) 

fa-) B e for e th e D e partm e nt can b e gin to mak e the approval 
of and to fund an Em e rg e ncy proj e ct a s d e fined in Rul e 
.0102(h). th e S e cr e tary will d e t e rmin e that th e e conomic 
di s location d es crib e d has cau se d an e conomic emergency and 
that th e e m e rg e ncy is of such siz e that e xtraordinary m e asur es 
ar e r e quir e d to h e lp all e viat e th e e m e rg e ncy. 

fh) That th e funding for Em e rg e ncy proj e cts during the 
curr e nt budg e t has not. 

(e^ Ev e n with th e funding for th e Em e rgency proj e ct so 
approv e d, will not e xc ee d on e hundr e d thousand dollar s 
($100,000.00). 

.Authority Section IX of Chapter '^54. 1989 S.L. 

SECTION .0500 - RESERVATION OF FUNDS 

.0501 GENERAL 

Units of government may apply for a "450 45 day 
reservation" of funds, relating to a particular building 
r e novation. — se — as IDF project te — allow — leeal — units — ef 
govommont to induce prospective private sector employers to 
locate or expand and thusly. to create new jobs. The S e cr e tary 
Department may accept and approve the requests where local 
units of government can document that : 

(1 ) Docum e nt that they have the potential for a project of 
strong merit; 

(2) Wh e r e a particular employer is interested in a proposed 
industrial building; 

(3) Wh e r e strong comp e titiv e offers have been made to the 
a client m by other states or wh e r e mor e comparativ e 
proposals hav e b ee n mad e to the pot e ntial e mploy e r by 
communities located in the l e ast distr e ss e d counti e s, tier 
areas not currently eligible for IDF funding. VenA 
application would bo A request shall be prepared along 
the lines of the application for approval described in 
Rule .0302 of this Subchapter, except that the data 
normally obtained from the client or potential 
employees would not he necessarily be prepared by the 
client and would not be required in such detail. 

.4uthorit^■ G.S 1438-43^.01. 



.4ulhorit\G.S. 143B-43~.01. 



.0404 



FORMAL APPLICATION PROCEDURES: 
APPROVAL 

(a) Where the S e cr e tary Department makes all the findings 
necessary, he it w4h shall do so in writing to the applicant at 
the earliest possible date after follow ing the procedures as set 
forth in this Subchapter. 

(b) The Secretary Department wi+l shall prepare a letter of 
approval in which all hi s finding s a s se t forth and cause this 
letter to be mailed to the applicant. 

.Authority- G.S. I43B-43''.0I. 

.0405 FINDINGS REQ/APPROVAL/EMGCY PROJ 



.0502 LIMITATIONS 

Such approvals Approvals to requests may be made in so 
long as that the "reservation of funds" for that a project w+JI 
shall not cause the total program funds "reser\ed" m that 
manner to exceed a sum not larg e r than an amount e qual to 
on e third one-half of the total of program funds available and 
not previousK committed, comm i tt e d in th e r e gular approval 
process . The total of programs funds not previously committed 
wiH shall include appropriated funds, those funds received in 
repayment from recipients, interest earned, accrual in e scrow 
accounts and funds not used and reverted from either approved 
projects or from "reserved" funds. 

.Authorit\-G.S. 1438-43'. 01. 



13:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1726 



PROPOSED RULES 



.0503 REVERSION OF FUNDS 

An approval for "reservation" of funds for projects wi+t shall 
not predicate approval or funding ef a project. When a formal 
and complete application for approval of a project has not been 
filed by the applicant that requested the reservation of funds, 
before the expiration date of the "reservation of funds", the 
Department may revert those funds back to the program 
without any obligation to the unit of goverrmient. Such 
r e v e r s ion of funds will b e communicat e d to th e unit of 
gov e rnm e nt in writing. The unit of government shall keep 
track of when the reservation of funds expires. 



SECTION .0800 - ENVIRONMENTAL COMPLIANCE 

.0801 COMPLIANCE WITH NORTH CAROLINA 
ENVIRONMENTAL RULES 

Any local unit of government or grantee receiving Industrial 
Development Funds (IDF), including Basic IDF. Utility 
Account funds. Emergency Economic Assistance funds or 
Clean Water Bonds proceeds shall comply with North 
Carolina Environmental Policy Rules as cited in the North 
Carolina Administrative Code unless the project activity js a 
non-major activity, as cited in I5A NCAC QIC .0504. 



Authorin- G.S. 143B-437.0L 



G.S. 143B-437.01. 



SECTION .0600 - REPORTING REQUIREMENTS 

.0601 REPORTING REQUIREMENTS 

(a) — Th e D e partment of Comm e rc e will r e port annually to 
th e G e n e ral As se mbly conc e rning th e applications mad e to th e 
fund and th e paym e nts mad e from th e fund and th e impact of 
th e payment s in th e targ e t e d counti e s. This r e port will bo filed 
annually with th e G e n e ral A s s e mbly e ith e r at th e e xpr e s se d 
conv e n ie nc e of th e Hous e and th e S e nate or by March I of 
e ach y e ar at th e offic es of th e Lt. Gov e rnor and the Sp e aker of 
th e Hous e . 

f^^ — Th e D e partment of Comm e rc e will also fil e monthly 
r e ports with th e Joint L e gi s lativ e Commission and th e Fi s cal 
R e s e arch — Divi s ion. — Th ese — r e ports — w4H — comm e nc e — en 
Nov e mb e r 30. 1987 and shall nam e th e part\(s) to whom 
paym e nts were made. — in what amounts, and. — for what 
purpos e s. 

Authority Section HI of Part XXII Chapter 830, 1987 Session 
Laws. 



SECTION .0700 - DESIGNATION OF ELIGIBLE 
TIERS AND COUNTIES 

.0701 ANNUAL DESIGNATION 

Each y e ar, on or before D e c e mb e r 31. the S e cr e tary of th e 
D e partm e nt of Economic and Community D e v e lopm e nt shall 
d es ignat e th e 50 most e conomically d e pr es sed counti e s in th e 
stat e : this d e signation shall b e for th e following calendar year 

Each year, on or before December 31. the Secretary of the 
Department of Commerce shall rank each of the one hundred 
counties of the state according to criteria currently set by NC 
General Statutes. The highest numerically ranked county shall 
reflect the most adverse economic data, whereas the lowest 
ranked county shall refiect the most favorable data. This 
listing of all counties shall then be divided into groups or tier 
areas. The Secretary shall designate at that time those counties 
and their tier areas that are eligible to participate jn the 
Industrial Development Fund using the priority specified under 
current statutes. This designation is effective for the following 
year; however, a Tier One county retains its designation for at 
least two consecutive years. 

Aiithorit\G.S. 105-129. 3. 



TITLE ISA - DEPARTMENT OF AND 
ENVIRONMENT NATURAL RESOURCES 

Notice is hereby given in accordance with G.S. 150B-21.2 
that the DENR - Environmental Management 
Commission intends to amend rules cited as I5A NCAC 28 
.0303-. 0304. Notice of Rule-making Proceedings was 
published in the Register on Januaiy 15. 1999. 

Proposed Effective Date: August I, 2000 

A Public Hearing will be conducted at 6:00 p.m. on May 
25.1999 at the Hapvood Count}' Commissioner's Boardroom, 
2 1 5 North Main Street. Waynesville, NC. 

Reason for Proposed Action: 15A NCAC 2B .0303 - The 

Environmental Management Commission is proposiiig to 
reclassify- iVesser Creek in Swain Count}- (Little Tennessee 
River Basin) to iticlude the Trout (Trj supplemental 
classification. Wesser Creek is proposed for reclassification 
from its source to Connelly Creek from Class C to Class C Tr 
A portion of Wesser Creek near its confluence with Connelly 
Creek currently carries the Trout classification. Studies 
conducted on Wesser Creek show that the stream supports a 
naturally reproducing rainbow trout population and thus meet 
the criteria for supplemental classification as Trout waters. If 
reclassified, wastewater dischargers to Wesser Creek will be 
required to comply with water qualit}- standards for Trout 
waters as set forth in 15A NCAC 2B .0200. Some of the water 
qualit}- standards applied to Trout waters, such as the 
dissolved oxygen standard, are more stringent than the water 
quality standards applied to Class C waters. 
15A NCAC 28 .0304 - The Environmental Management 
Commission is proposing to reclassify Rough Creek in 
Ha}-wood County (French Broad River Basin) to include the 
Trout (Tr) and Outstanding Resource Waters (ORW) 
supplemental classifications. Rough Creek, from its source to 
the Canton Reservoir including tributaries, is proposed for 
reclassification from Class WS-I to Class WS-I Tr ORW. The 
Town of Canton has requested that Rough Creek he 
reclassified to include the supplemental ORW classification. 
In order to be classified as ORW, a water body must be of 



1727 



NORTH CAROLINA REGISTER 



April 15, 1999 



13:20 



PROPOSED RULES 



exceptional state or national recreational or ecological 
significance and the waters must have exceptional water 
quality: In addition, the waters must also exhibit one or more 
of the following resource values or uses: 

111 there are outstanding fish (or commercially important 
aquatic species) habitat and fisheries: 

(2) there is an unusually high level of M'ater-based 
recreation or the potential for such recreation: 

(3) the waters ha\'e already received some special 
designation such as a North Carolina or National U ild 
and Scenic River Native of Special Native Trout 
Waters. National Wildlife Refuge, etc. which do not 
provide any water quality protection: 

(4l the waters represent an important component of a slate 

or national park or forest: or 
(5) the waters are of special ecological or scientific 
significance such as habitat for rare or endangered 
species or as areas for research and education. 
Water quality analyses show that Rough Creek has excellent 
water quality. Several outstanding resource values were 
identified, including: a reproducing brook trout population: 
the watershed is a designated Natural Heritage .Area: there 
are plans to establish an educational facility underM'ay: and a 
rare wetland bog community which supports several rare 
plant species was identified in the headwaters area. Special 
protection measures that apply to North Carolina ORWs are 
set forth in 15.4 NC.4C 2B .0225. At a minimum, no new 
wastewater discharges or expansions to existing discharges 
are permitted, and stormwater controls for most new 
development are required. 

Comment Procedures: The purpose of this announcement is 
to encourage those interested in this proposal to provide 
comments. You may either attend the public hearing and 
make relevant verbal comments or submit written comments, 
data or other relevant information by June 24. 1999. The 
Hearing Officer may limit the length of time that you may 
speak at the public hearing, if necessaiy. so that all those who 
wish to speak may have an opportunity' to do so. We 
encourage you to submit written comments as well. The EMC 
is very interested in all comments pertaining to the proposed 
reclassifications. It is very important that all interested and 
potentially affected persons or parties make their views known 
to the EMC whether in fa\'or of or opposed to any and all 
provisions of the proposed reclassification. The EMC may not 
adopt a rule that differs substantially from the text of the 
proposed rules published in the North Carolina Register 
unless the EMC publishes the text of the proposed different 
rule and accepts comments on the new text (see 150B-21.2lg)). 
.411 interested and potentially affected persons are strongly 
encouraged to read the entire announcement and supporting 
information, and make appropriate comments on the proposal. 
Written comments may be submitted to: Liz Kovasckitz. DENR 
- Division of Water Quality. 512 N. Salisbun' Street, Raleigh, 
NC 27611. Phone: 733-5083. Ext. 572. 

Fiscal Note: These Rules do not affect the expenditures or 



revenues of state or local government funds. These Rules do 
not have a substantial economic impact of at least five million 
dollars ($5. 000, 000) in a 12-month period 

CHAPTER 2 - ENVIRONMENTAL 
MANAGEMENT 

SUBCHAPTER 2B - SURFACE WATER AND 
WETLAND STANDARDS 

SECTION .0300 - ASSIGNMENT OF STREAM 
CLASSIFICATIONS 

.0303 LITTLE TENN RIVER BASIN AND 

SAVANNAH RIVER DRAINAGE AREA 

(a) The schedule may be inspected at the following places: 

(1) Clerk of Court: 
Clay County 
Graham County 
Jackson County 
Macon County 
Swain County 
Transylvania County 

(2) North Carolina Department of Environment and 
Natural Resources 

Asheville Regional Office 
Interchange Building 
59 Woodtm Place 
Asheville, North Carolina. 

(b) Unnamed Streams. Such streams entering Georgia or 
Tennessee shall be classified "C Tr." Such streams in the 
Savannah River drainage area entering South Carolina shall be 
classified "B Tr." 

(c) The Little Tennessee River Basin and Savannah River 
Drainage Area Schedule of Classifications and Water Quality 
Standards was amended effective: 

(1) February 16, 1977; 

(2) March 1, 1977; 

(3) July 13, 1980; 

(4) Februap, 1, 1986; 

(5) October 1, 1987; 

(6) March 1, 1989; 

(7) January' 1, 1990; 

(8) July 1,1990; 

(9) August 1, 1990; 

(10) March I, 1991; 

(11) August 3, 1992; 

(12) February 1, 1993; 

(13) August 1.1994; 

(14) September 1, 1996; 

(15) August I, 1998; 

(16) August 1, 2000. 

(d) The Schedule of Classifications of Water Quality 
Standards for the Little Tennessee Basin and Savannah River 
Drainage Area was amended effective March 1, 1989 as 
follows: 

( 1 ) Nantahala River (Index No. 2-57) from source to the 
backwaters of Nantahala Lake and all tributary 



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1728 



PROPOSED RULES 



waters were reclassified from Class B-trout. Class 
C-trout and Class C to Class B-trout ORW. Class 
C-trout ORW and Class C ORW. 
(2) Chattooga River (Index No. 3) including Scotsman 
Creek. Overflow Creek, Big Creek, Talley Mill 
Creek and all tributarv' waters were reclassified from 
Class B-trout. Class C-trout and Class C to Class 
B-trout ORW, Class C-trout ORW and Class C 
ORW and Clear Creek and all tributary waters were 
reclassified from Class C-trout and Class C to Class 
B-trout and Class B. 

(e) The Schedule of Classifications and Water Quality 
Standards for the Little Tennessee River Basin and Savannah 
River Drainage Area was amended effective January 1. 1^90 
as follows: 

(1) North Fork Coweeta Creek (Index No. 2-10-4) and 
Falls Branch (Index No. 2-10-4-1 ) were reclassified 
from Class C to Class B. 

(2) Burningtown Creek (Index No. 2-38) was 
reclassified from C-trout to B-trout. 

(f) The Schedule of Classifications and Water Quality 
Standards for the Little Tennessee River Basin and Savannah 
River Drainage Area was amended effective July 1, 1990 b\ 
the reclassification of Alarka Creek (Index No. 2-69) from 
source to Upper Long Creek (Index No. 2-69-2) including all 
tributaries ft^om Classes C and C Tr to Classes C HQW and C 
Tr HQW. 

(g) The Schedule of Classifications and Water Quality 
Standards for the Little Tennessee River Basin and Savannah 
River Drainage Area was amended effective March 1, 1991 as 
follows: 

(1) Cartoogechaye Creek [Index Nos. 2-19-(l) and 
2-19-(16)] from Gibson Cove Branch to bridge at 
U.S. Hwy. 23 and 441 and from the bridge at U.S. 
Hwy\ 23 and 441 to the Little Tennessee River was 
reclassified from Classes WS-lII Tr and C Tr to 
Classes WS-111 and B Tr and B Tr respectively. 

(2) Coweeta Creek (Index Nos. 2-10) from its source to 
the Little Tennessee River including all tributaries 
except Dryman Fork (Index No. 2-10-3) and North 
Fork Coweeta Creek (Index No. 2-10-4) was 
reclassified from Classes C and C Tr to Classes B 
and B Tr. 

(h) The Schedule of Classifications and Water Quality 
Standards for the Little Tennessee River Basin and Savannah 
River Drainage Area was amended effective August 3. 1992 
with the reclassification of all water supply waters (waters 
with a primary classification of WS-I. WS-II or WS-Ill). 
These waters were reclassified to WS-I. WS-II, WS-Ill. WS- 
IV or WS-V as defined in the revised water supply protection 
rules. (ISA NCAC 2B .0100. .0200 and .0300) which became 
effective on August 3, 1992. In some cases, streams with 
primary classifications other than WS were reclassified to a 
WS classification due to their proximity and linkage to water 
supply waters. In other cases, waters were reclassified from a 
WS classification to an alternate appropriate priman. 
classification after being identified as downstream of a water 
supply intake or identified as not being used for water suppK 



purposes. 

(i) The Schedule of Classifications and Water Quality 
Standards for the Little Tennessee River Basin and Savannah 
River Drainage Area has been amended effective February 1 . 
1993 as follows: 

(1) Bearwallow Creek from its source to 2.3 miles 
upstream of the Toxaway River [Index No. 4-7-(l)] 
was revised to indicate the application of an 
additional management strategy (referencing 15A 
NCAC 2B .0201(d) to protect downstream waters; 
and 

(2) the Tuckaseegee River from its source to Tennessee 
Creek [Index No. 2-79-(0.5)] including all 
tributaries was reclassified from Classes WS-III&B 
Tr HQW. WS-III HQW and WS-III to Classes WS- 
Ill Tr ORW and WS-III ORW. 

(j) The Schedule of Classifications and Water Quality 
Standards for the Little Tennessee River Basin and Savannah 
River Drainage Area was amended effective August 1. 1994 
with the reclassification of Deep Creek [Index Nos. 2-79-63- 
(1) and 2-79-63-(16)] from its source to the Great Smokey 
Mountains National Park Boundary including tributaries from 
Classes C Tr. B Tr and C Tr HQW to Classes WS-II Tr and 
WS-II TrCA. 

(k) The Schedule of Classifications and Water Quality 
Standards for the Little Tennessee River Basin and Savannah 
River Drainage Area was amended effective September 1. 
1996 as follows: 

( 1 ) Deep Creek from the Great Smok"y Mountains 
National Park Boundary to the Tuckasegee River 
[Index no. 2-79-63-(2 1 )] was reclassified from Class 
C Tr to Class B Tr; and 

(2) the Tuckasegee River from the West Fork 
Tuckasegee River to Savannah Creek and from 
Macks Tov\n Branch to Cochran Branch [Index 
Nos. 2-79-(24). 2-79(29.5) and 2-79-(38)] was 
reclassified from Classes WS-III Tr, WS-III Tr CA 
and C to Classes WS-IIl&B Tr, WS-III&B Tr CA 
andB. 

(I) The Schedule of Classifications and Water Quality 
Standards for the Little Tennessee River Basin and Savannah 
River Drainage Area was amended effective August 1, 1998 
with the reclassifications of Thorpe Reservoir (Lake 
Glenville). Hurricane Creek, and Laurel Branch [Index Nos. 2- 
79-23-(l). 2 -79-23-2, and 2-79-23-2-1 respectively] from 
classes WS-III&B, WS-III Tr and WS-III to classes WS-III&B 
HQW, WS-III Tr HQW, and WS-III HQW. 

(m) The Schedule of Classifications and Water Quality 
Standards for the Little Tennessee River Basin and Savannah 
River Drainage Area was amended August 1. 2000 with the 
reclassification of Wesser Creek [Index No. 2-79-52-5-11 from 
its source to Williams Branch from Class C to Class C Tr. 

Authority G.S. 143-214.1: 143-215.1: 143-21 5. 3(aj(l). 

.0304 FRENCH BROAD RIVER BASIN 

(a) The schedule ma\ be inspected at the following places: 
(1) Clerk of Court: 



• 



t 



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13:20 



PROPOSED RULES 



Aver>' County 
Buncombe County 
Haywood County 
Henderson County 
Madison County 
Mitchell County' 
Transylvania County 
Yancey County 
(2) North Carolina Department of Environment and 
Natural Resources 
Asheville Regional Office 
Interchange Building 
59 Woodfin Place 
Asheville, North Carolina. 

(b) Unnamed Streams. Such streams entering Tennessee 
will be classified "B." 

(c) The French Broad River Basin Schedule of 
Classifications and Water Quality' Standards was amended 
effective: 

(1) September 22. 1976: 

(2) March 1. 1977: 

(3) August 12, 1979; 

(4) April 1. 1983: 

(5) August I. 1984: 

(6) August 1. 1985; 

(7) Februarv I. 1986; 

(8) May I, 1987; 

(9) March 1,1989; 

(10) October 1. 1989; 

(11) Januar>' 1. 1990; 

(12) August 1. 1990; 

(13) August 3, 1992; 

(14) October 1. 1993; 

(15) July I, 1995: 

(16) November 1. 1995: 

(17) Januan,' I. 1996; 

(18) April l', 1996; 

(19) August I,+99«t 1998; 

(20) August 1. 2000. 

(d) The Schedule of Classifications and Water Quality' 
Standards for the French Broad River Basin was amended 
effective March 1, 1989 as follows: 

(1) Cataloochee Creek (Index No. 5-41) and all 
tributan, waters were reclassified from Class C-trout 
and Class C to Class C-trout ORW and Class C 
ORW. 

(2) South Fork Mills River (Index No. 6-54-3) down to 
Queen Creek and all tributaries were reclassified 
from Class WS-I and Class WS-III-trout to Class 
WS-I ORW and Class WS-III-trout ORW. 

(e) The Schedule of Classifications and Water Quality 
Standards for the French Broad River Basin was amended 
effective October I. 1989 as follows: Cane River (Index No. 
7-3) from source to Bow lens Creek and all tributaries were 
reclassified from Class C trout and Class C to Class WS-III 
trout and Class WS-111. 

(f) The Schedule of Classifications and Water Quality' 
Standards for the French Broad River Basin was amended 



effective January 1, 1990 as follows: North Toe River (Index 
No. 7-2) from source to Cathis Creek (Christ Branch) and all 
tributaries were reclassified from Class C trout and Class C to 
Class WS-III trout and Class WS-III. 

(g) The Schedule of Classifications and Water Quality 
Standards for the French Broad River Basin was amended 
effective August 3, 1992 with the reclassification of all water 
supply waters (waters with a primary classification of WS-I, 
WS-II or WS-III). These waters were reclassified to WS-I, 
WS-II. WS-III, WS-IV or WS-V as defined in the revised 
water supply protection rules, (15A NCAC 2B .0100, .0200 
and .0300) which became effective on August 3, 1992. In 
some cases, streams with primarv' classifications other than 
WS were reclassified to a WS classification due to their 
proximity and linkage to water supply waters. In other cases, 
waters were reclassified from a WS classification to an 
alternate appropriate primarv classification after being 
identified as downstream of a water supply intake or identified 
as not being used for water supply purposes. 

(h) The Schedule of Classifications and Water Quality 
Standards for the French Broad River Basin was amended 
effective October I. 1993 as follows: Reasonover Creek 
[Index No. 6-38- 14-( 1 )] from source to Reasonover Lake Dam 
and all tributaries were reclassified from Class B Trout to 
Class WS-V and B Trout, and Reasonover Creek [Index No. 
6-38-14-(4)] from Reasonover Lake Dam to Lake Julia Dam 
and all tributaries were reclassified from Class C Trout to 
Class WS-V Trout. 

(i) The Schedule of Classifications and Water Quality 
Standards for the French Broad River Basin was amended 
effective Juh 1, 1995 with the reclassification of Cane Creek 
[Index Nos. 6-57-(l) and 6-57-(9)] from its source to the 
French Broad River from Classes WS-IV and WS-IV Tr to 
Classes WS-V, WS-V Tr and WS-IV. 

(j) The Schedule of Classifications and Water Quality 
Standards for the French Broad River Basin was amended 
effective November I, 1995 as follows: North Toe River 
[Index Numbers 7-2-(0.5) and 7-2-(37.5)] from source to a 
point 0.2 miles downsfream of Banjo Branch, including 
tributaries, has been reclassified from Class WS-III. WS-III 
Trout and WS-III Trout CA (critical area) to Class WS-IV 
Trout, WS-IV, WS-IV Trout CA, and C Trout. 

(k) The Schedule of Classifications and Water Quality 
Standards for the French Broad River Basin was amended 
effective January 1, 1996 as follows: Stokely Hollow [Index 
Numbers 6-121. 5-(l) and 6-121. 5-(2)] from source to mouth 
of French Broad River has been reclassified from Class WS-II 
and Class WS-II CA to Class C. 

(I) The Schedule of Classifications and Water Quality 
Standards for the French Broad River Basin was amended 
April 1, 1996 with the reclassification of the French Broad 
River [Index No. 6-( 1 )] from a point 0.5 miles downstream of 
Little River to Mill Pond Creek to Class WS-IV: French Broad 
River [Index No. 6-(51.5)] from a point 0.6 miles upstream of 
Mills River to Mills River to Class WS-IV CA (Critical Area), 
from Mills River to a point 0. 1 miles upstream of Boring Mill 
Branch to Class C: and the Mills River [Index No. 6-54-(5)] 
was reclassified from City of Hendersonville water suppl_\ 



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NORTH CAROLINA REGISTER 



April 15, 1999 



1730 



PROPOSED RULES 



intake to a point 0.7 miles upstream of mouth of Mills River to 
Class WS-lIl, and from a point 0.7 miles upstream of mouth of 
Mills River to French Broad River to Class WS- HI CA 
(Critical Area). 

(m) The Schedule of Classifications and Water Oualit>' 
Standards for the French Broad River Basin was amended 
August I, 1998 with the revision to the primary classification 
for portions of the French Broad River [Index No. 6-(38.5)] 
and the North Toe River 7-2-(l0.5) from Class IV to Class C. 

(n) The s ch e du le Schedule of Classifications and Water 
Quality Standards for the French Broad River Basin was 
amended August 1, 1998 with the reclassification of Clear 
Creek [Index No. 6-55-(l)] from its source to Lewis Creek 
from Class C Tr to Class B Tr. 

(o) The Schedule of Classifications and Water Quality 
Standards for the French Broad River Basin was amended 
August _L 2000 with the reclassification of Rough Creek 
[Index No. 5-8-4-( 1 )]. including all tributaries, from its source 
to the Canton Reservoir from Class WS-1 to Class WS-I Tr 
ORW. 

Authority G.S. 143-214.1: 143-215.1: 143-21 5. 3(al(l). 

Notice is hereby given in accordance with G.S. 150B-21.2 
that the DENR - Environmental Management 
Commission intends to ametid rule cited as 1 5.4 NCAC 2B 
.0306. Notice of Rule-making Proceedings was published in 
the Register on January 15, 1999. 

Proposed Effective Date: August 1. 2000 

A Public Hearing will be conducted at 6:00 p.m. on May 10. 
1999 at the East Henderson High School Auditorium. 1 10 
Upward Road. East Flat Rock. NC. 



the area affected by the proposed HQW reclassification in the 
Green River watershed will have additional treatment 
requirements. Projects which require a Sedimentation and 
Erosion Control Plan and which drain to and are within one 
mile of HQW streams will have more stringent land use 
developttient criteria as defined in ISA NCAC 2H . 1006. The 
criteria for designation to High Quality Waters as defined in 
15A NCAC 2B .0201 includes those waters which are rated as 
excellent based on biological and physical/chemical 
clraracteristics through Division monitoring or special studies, 
native and special native trout waters designated by the 
Wildlife Resources Coitimission. primaiy nursen' areas 
designated by the Marine Fisheries Commission and other 
functional nursery areas designated by the Wildlife Resources 
Coitimission. critical habitat areas designated by the Wildlife 
Resources Commission or the Department of .Agriculture, all 
water supply watersheds which are either classified as WS-I 
or WS-II or those for which a formal petition for 
reclassification as WS-I or WS-II has been received from the 
appropriate local government and accepted by the Division of 
Water Quality, and all Class SA waters. The B Classification 
is assigned to waters that are used for primary recreational 
purposes. Primaiy recreation is defined in Division rules as 
"swimming, skin diving, skiing, and similar uses involving 
human body contact with water where such activities take 
place in an organized or on a frequent basis." Under North 
Carolina rules, several criteria must be met before waters can 
be classified for primary recreational. These are: I) the area 
must be of sufficient size and depth to support primary 
recreation: 2) fecal coliform concentrations must be less than 
200 colonies per 100 milliliters based on a geometric mean 
derived from five samples taken within a 30 day period: 3) 
there must be no sources of water pollution which could result 
in a hazard to public health in close proximit}- to areas where 
recreation occurs: and 4) primary recreation must take place 
in an organized or on a frequent basis. 



Reason for Proposed Action: 15A NCAC 2B .0306 - The 

Environmental Management Commission is proposing to 
reclassify the Green River in Henderson Count}' (Broad River 
Basin) for primaiy recreation (Class B> and to include the 
High Quality Waters (HQW) supplemental classification. The 
Green River and its tributaries are proposed for 
reclassification from their source to. and including. Rock 
Creek from Class C Tr to Class B Tr HQW. The Green River 
and its tributaries, from Rock Creek to Lake Summit, are 
proposed for reclassification from Class C Tr to Class B Tr 
Requests for reclassification of the Green River were 
submitted by a local property' owner's association, 
independent property owners and boy's camp. Water qualiv,' 
studies conducted on the Green River and its tributaries show 
that the streams meet the criteria for Classes B and HQW in 
the areas proposed for reclassification as defined above. If 
reclassified, wastewater dischargers to the Green River will be 
required to comply with reliability standards set forth in 15A 
NCAC 2H .0124. Reliability standards require facilities to 
insure continued treatment of wastewater during instances of 
power failure. New and expanding wastewater dischargers to 



Comment Procedures: The purpose of this announcement is 
to encourage those interested in this proposal to provide 
comments. You may either attend the public hearing and 
make relevant verbal comments or submit written comments, 
data or other relevant information by June 10. 1999. The 
Hearing Officer may limit the length of time that you may 
speak at the public hearing, if necessan: so that all those who 
wish to speak may have an opportunity to do so. We 
encourage you to submit written comments as well. The EMC 
is very interested in all comments pertaining to the proposed 
reclassifications. It is very important that all interested and 
potentially affected persons or parties make their views known 
to the EMC whether in favor of or opposed to any and all 
provisions of the proposed reclassification. The EMC may 
not adopt a rule that differs substantially from the text of the 
proposed rule published in the North Carolina Register unless 
the EMC publishes the text of the proposed different rule and 
accepts comments on the new text (see 150B-21.2(g)). All 
interested and potentially affected persons are strongly 
encouraged to read the entire announcement and supporting 
information, and make appropriate comments on the proposal. 



1731 



NORTH CAROLINA REGISTER 



April 15, 1999 



13:20 



PROPOSED RULES 



Written comments may he submitted to: Liz Kovasckitz. DENR 
- Division of Water Qualir\: 512 N. Salisbuiy Street. Raleigh. 
NC 27611. Phone: 733-5083. Ext. 572. 

Fiscal Note: 777/s Ride does not affect the expenditures or 
revenues of state or local government funds. This Rule does 
not have a substantial economic impact of at least five million 
dollars ($5,000,000) in a 12-month period 

CHAPTER 2 - ENVIRONMENTAL MANAGEMENT 

SUBCHAPTER 2B - SURFACE WATER AND 
WETLAND STANDARDS 

SECTION .0300 - ASSIGNMENT OF STREAM 
CLASSIFICATIONS 

.0306 BROAD RIVER BASIN 

(a) The schedule may be inspected at the following places: 

(1) Clerk of Court: 
Buncombe County 
Cleveland County 
Gaston County 
Henderson County 
Lincoln County 
McDowell County 
Polk County 
Rutherford County 

(2) North Carolina Department of Environment and 
Natural Resources: 

(A) Mooresville Regional Office 
919 North Main Street 
Mooresville. North Carolina 

(B) Asheville Regional Office 
Interchange Building 

59 Woodfm Place 
Asheville, North Carolina. 

(b) Unnamed Streams. Such streams entering South 
Carolina are classified "C." 

(c) The Broad River Basin Schedule of Classifications and 
Water Quality Standards was amended effective: 

(1) March 1. 1977; 

(2) Februap,' 12, 1979; 

(3) August 12, 1979; 

(4) April 1, 1983; 

(5) February 1, 1986; 

(6) August 3, 1992; 

(7) September 1, 1994; 

(8) August 1 , +W^ 1998; 
(9j August 1, 2000. 

(d) The Schedule of Classifications and Water Quality 
Standards for the Broad River Basin was amended effective 
August 3, 1992 with the reclassification of all water supply 
waters (waters with a primary classification of WS-I, WS-II or 
WS-lll). These waters were reclassified to WS-I, WS-Il, WS- 
111, WS-IV or WS-V as defined in the revised water supply 
protection rules. (15A NCAC 2B .0100. .0200 and .0300) 
which became effective on August 3. 1992. In some cases. 



streams with primary classifications other than WS were 
reclassified to a WS classification due to their proximity and 
linkage to water supply waters. In other cases, waters were 
reclassified from a WS classification to an alternate 
appropriate primary classification after being identified as 
downstream of a water supply intake or identified as not being 
used for water supply purposes. 

(e) The Schedule of Classifications and Water Quality 
Standards for the Broad River Basin was amended effective 
September 1. 1994 with the reclassification of the Second 
Broad River [Index No. 9-41 -(0.5)] from its source to 
Roberson Creek including associated tributaries was 
reclassified from Class WS-V to Classes WS-V, WS-IV and 
WS-IV CA. 

(f) The Schedule of Classifications and Water Quality 
Standards for the Broad River Basin was amended effective 
August 1, 1998 with the revision to the primary classification 
for portions of the Broad River [Index No. 9-(23.5)] from 
Class WS-IV to Class C and Second Broad River [Index Nos. 
9-4I-(I0.5) and 9-4I-(I4.5)] and First Broad River [Index No. 
9-50-( 1 1 )] from Class WS-IV to Class WS-V. 

(g) The Schedule of Classifications and Water Quality 
Standards for the Broad River Basin was amended August _L 
2000 with the reclassification of the Green River [Index No. 9- 
29-( 1 )]. including aH tributaries, from its source to the 
downstream side of the mouth of Rock Creek from Class C Tr 
to Class B Tr HQW. and the Green River from the 
downstream side ot" the mouth of Rock Creek to jts mouth in 
Lake Summit at elevation 20 1 1 from Class C Tr to Class B Tr. 

.Authorities. 143-214.1: 143-215.1: 143-21 5. 3(all 1). 

Notice is hereby given in accordance with G.S. 150B-21.2 
that the DENR - Environmental Management 
Commission intends to amend rule cited as 15.4 NCAC 2B 
. 0308. Notice of Rule-making Proceedings was published in 
the Register on Janua)y 15. 1999. 

Proposed Effective Date: August 1, 2000 

A Public Hearing will be conducted at 6:00 p.m. on May 11, 
1999 ui the .Avery Count}' Courthouse, 1 Avety Square, 
New land. NC. 

Reason for Proposed Action: The Environmental 
Management Commission is proposing to reclassifi- Little 
Grassy Creek in .Avery Count}' (Catawba River Basin) to 
Include the (Outstanding Resource Haters (ORW) 
supplemental classification. Little Grassy Creek, from its 
source to the Linville River, including tributaries, is proposed 
for reclassification from Class C Tr to Class C Tr ORW. A 
request for reclassification of the headv,'aters of the Linville 
River to High Quality (HOW) was submitted by a local golf 
club to the Division Water Quality in 1997. The Linville River 
did not qualifi for reclassification to HQW. However during 



13:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1732 



PROPOSED RULES 



the water quality- investigation it was determined that Little 
Grassy Creek, a tributary stream to the Linxille River 
qualified for supplemental classification as Outstanding 
Resource Waters. In order to he classified as ORW, a water 
body must be of exceptional state or national recreational or 
ecological significance and the waters must have exceptional 
water quality-. In addition, the waters must also exhibit one or 
more of the following resource values or uses: 

(1) there are outstanding fish for commercially important 
aquatic species) habitat and fisheries: 

(2) there is an unusually high level of water-based 
recreation or the potential for such recreation: 

(3) the waters have already received some special 
designation such as a North Carolina or National Wild 
and Scenic River Native of Special Native Trout 
Waters, National Wildlife Refuge, etc. which do not 
provide any water quality protection: 

(4) the waters represent an important component of a state 
or national park or forest: or 

(5) the waters are of special ecological or scientific 
significance such as habitat for rare or endangered 
species or as areas for research and education. 

Water quality analyses show that Little Grassy Creek has 
excellent water quality and supports a reproducing brook 
trout population, therefore qualifying this stream for ORW 
designation. Special protection measures that apply to North 
Carolina ORWs are set forth in 15.4 NCAC 2B .0225. At a 
minimum, no new wastewater discharges or expansions to 
existing discharges are permitted, and stormwater controls for 
most new development are required. 

Comment Procedures: The purpose of this announcement is 
to encourage those interested in this proposal to provide 
comments. You may either attend the public hearing and 
make relevant verbal comments or submit written comments. 
data or other relevant information by June 10. 1999. The 
Hearing Officer may limit the length of time that you may 
speak at the public hearing, ifnecessaiy. so that all those who 
wish to speak may have an opportunity to do so. We 
encourage you to submit written comments as well. The EMC 
is very interested in all comments pertaining to the proposed 
reclassifications. It is very important that all interested and 
potentially affected persons or parties make their views known 
to the EMC whether in favor of or opposed to any and all 
provisions of the proposed reclassification. The EMC may 
not adopt a rule that differs substantially from the text of the 
proposed rule published in the North Carolina Register unless 
the EMC publishes the text of the proposed different rule and 
accepts comments on the ncM- text (see 150B-21.2(g)). All 
interested and potentially affected persons are strongly 
encouraged to read the entire announcement and supporting 
information, and make appropriate comments on the proposal. 
Written comments may be submitted to: Liz Kovasckit:. DENR 
- Division of Water Quality-. 512 N. Salisbuiy Street. Raleigh. 
NC 27611. Phone: '33-5083. Ext. 572. 

Fiscal Note: This Rule does not affect the expenditures or 
revenues of state or local government funds. This Rule does 



not have a substantial economic impact of at least five million 
dollars ($5,000,000) in a 12-month period 

CHAPTER 2 - ENVIRONMENTAL MANAGEMENT 

SUBCHAPTER 2B - SURFACE WATER AND 
WETLAND STANDARDS 

SECTION .0300 - ASSIGNMENT OF STREAM 
CLASSIFICATIONS 

.0308 CATAWBA RIVER BASIN 

(a) The schedule may be inspected at the following places: 

(1) Clerk of Court: 
Alexander Countv 
Avery County 
Burke County 
Caldwell County 
Catawba County 
Gaston County 
Iredell County 
Lincoln County 
McDowell County 
Mecklenburg County 
Union County 
Watauga County 

(2) North Carolina Department of Environment and 
Natural Resources: 

(A) Mooresville Regional Office 
919 North Main Street 
Mooresville. North Carolina 

(B) Asheville Regional Office 
Interchange Building 

59 Woodfm Place 
Asheville. North Carolina. 

(b) Unnamed Streams. Such streams entering South 
Carolina are classified "C." 

(c) The Catawba River Basin Schedule of Classifications 
and Water Qualit\' Standards was amended effective: 

(1) March 1. 1977: 

(2) August 12. 1979; 

(3) April 1. 1982: 

(4) January 1, 1985: 

(5) August 1. 1985: 

(6) Februar) 1. 1986; 

(7) March f, 1989; 

(8) May 1.1989; 

(9) March 1. 1990; 

(10) August 1, 1990; 

(11) Augusts. 1992; 

(12) April 1. 1994; 

(13) July 1. 1995; 

(14) September I. 1996; 

(15) August I. 1998: 

(16) April l.+999^ 1999; 

(17) August 1. 2000. 

(d) The Schedule of Classifications and Water Quality 
Standards for the Catawba River Basin was amended effective 



I 



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13:20 



PROPOSED RULES 



March I, 1989 as follows: 

{ 1 ) Wilson Creek (Index No. 1 1-38-34) and all tributary 
waters were reclassified from Class B-trout and 
Class C-trout to Class B-trout ORW and Class 
C-trout ORW. 

(e) The Schedule of Classifications and Water Quality 
Standards for the Catawba River Basin was amended effective 
May 1. 1989 as follows: 

(1) Henr> Fork [Index Nos. 11-129-1-(1) and 
ll-129-l-(2)] fi-om source to Laurel Creek, 
including all tributaries, were reclassified from 
Class WS-1, C and C trout to Class WS-1 ORW, C 
ORW and C trout ORW, except Ivy Creek and Rock 
Creek which will remain Class C trout and Class C. 

(2) Jacob Fork [index Nos. ll-129-2-(l) and 
1 1-129-2-(4)] from source to Camp Creek, including 
all tributaries, were reclassified from Class WS-111 
trout and WS-IIl to WS-lIl trout ORW and WS-IIl 
ORW. 

(f) The Schedule of Classifications and Water Quality 
Standards for the Catawba River Basin was amended effective 
March 1, 1990 as follows: 

( 1 ) Upper Creek [Index No. 1 1 -35-2-( 1 )] from source to 
Timbered Branch including all tributaries except 
Timbered Branch (Index No. 11-35-2-9) was 
reclassified from Class C Trout to Class C Trout 
ORW. 

(2) Steels Creek [Index No. 1 1-35-2-12(1)] from source 
to Little Fork and all tributaries was reclassified 
from Class C Trout to Class C Trout ORW. 

(g) The Schedule of Classifications and Water Quality 
Standards for the Catawba River Basin was amended effective 
August 3, 1992 with the reclassification of all water supply 
waters (waters with a primary classification of WS-1, WS-11 or 
WS-111). These waters were reclassified to WS-l, WS-Il, WS- 
111. WS-IV or WS-V as defined in the revised water supply 
protection rules, (15A NCAC 2B .0100, .0200 and .0300) 
which became effective on August 3, 1992. In some cases, 
streams with primary classifications other than WS were 
reclassitled to a WS classification due to their proximity and 
linkage to water supply waters. In other cases, waters were 
reclassified from a WS classification to an alternate 
appropriate primary classification after being identified as 
downstream of a water supply intake or identified as not being 
used for water supply purposes. 

(h) The Schedule of Classifications and Water Quality 
Standards for the Catawba River Basin was amended effective 
April 1, 1994 as follows: 

(1) Friday Lake (Index No. 1 1-125.5) from its source to 
Little Paw Creek was reclassified from Class C to 
Class B. 

(2) The Linville River [Index No. 12-29-(l)] from 
Grandmother Creek to Linville Falls was 
reclassified from Class C Tr to Class B Tr 

(i) The Schedule of Classifications and Water Quality 
Standards for the Catawba River Basin was amended effective 
JuK I, 1995 with the reclassification of Clark Creek from a 
point 0.6 mile downstream of Catawba County SR 2014 to 0.4 



mile upstream of Larkard Creek [Index No. 1 1-129-5-(4.5)], 
and Howards Creek from its source to 0.7 mile upstream of 
Lincoln County State Road 1200 [Index No. 11-129-4], 
including associated tributaries from Class WS-IV to Classes 
C and WS-IV. 

(j) The Schedule of Classifications and Water Quality 
Standards for the Catawba River Basin was amended effective 
September 1, 1996 as follows: 

(1) North Fork Catawba River [Index No. ll-24-(l)] 
from Laurel Branch to Armstrong Creek from Class 
C Tr to Class B Tr; and 

(2) Catawba River (Lake Hickory) from Rhodhiss dam 
to highway 321 \ [Index No. 11 -(51)] from Class 
WS-IV CA to Class WS-IV&B CA. 

(k) The Schedule of Classifications and Water Quality 
Standards for the Catawba River Basin was amended effective 
August 1, 1998 with the revision to the primary classification 
for portions of the South Fork Catawba River [Index No. II- 
129-(0.5)] and Hoyle Creek [Index No. 11-I29-15-(1)] from 
Class WS-IV to Class WS-V. 

(I) The Schedule of Classifications and Water Quality 
Standards for the Catawba River Basin was amended effective 
August I, 1998 as follows: 

(1) Mill Creek [Index No. 11-7] from its source to 
Swannanoa Creek, including all tributaries, from 
Class C Tr to Class C Tr HQW: and 

(2) Toms Creek [Index Nos. 11-2I-(I) and ll-21-(2)] 
from its source to Harris Creek, including all 
fributaries. from Class C Tr to Class C Tr HQW and 
from Harris Creek to McDowell Count> SR 1434, 
including all tributaries, from Class C to Class C 
HQW. 

(m) The Schedule of Classifications and Water Quality 
Standards for the Catawba River Basin was amended effective 
April 1, 1999 with the reclassification of a portion of the 
Catawba River [Index Nos. ll-(27.5) and 1I-(3I) from Class 
WS-IV & B and WS-IV to Class WS-V & B and WS-V. 

(n) The Schedule of Classifications and Water Quality 
Standards for the Catawba River Basin was amended effective 
April 1. 1999 with the reclassification of Armstrong Creek 
[Index Nos. I l-24-14-(l), 1 1-24-14-( 13.5) and 1 l-24-l4-(14)], 
and all tributaries from Classes WS-11 Tr, WS-11, WS-Il CA 
and C Tr to Classes C Tr HQW and C HQW. 

(o) The Schedule of Classifications and Water Quality 
Standards for the Catawba River Basin was amended April 1, 
1999 as follows: 

(1) Lookout Shoals Lake from Oxford Dam to Island 
Creek [Index No. ll-(67)] from Class WS-V to 
Class WS-IV CA, from Island Creek to Elk Shoal 
Creek [Index No. ll-(70.5)] from Class WS-IV to 
Class WS-IV CA and from Elk Shoal Creek to a 
point one half mile upstream of Lookout Shoals 
Dam [Index No. II -(72)] from Class WS-IV&B to 
Class WS-IV&B CA; and 

(2) The primary classifications of tributan, streams that 
are within t1ve miles and draining to the nomial pool 
elevation of Lookout Shoals Lake (Protected Area) 
have been revised to Class WS-IV; and 



13:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1734 



PROPOSED RULES 



(3) The primar\ classifications of tributar\' streams that 

are within one half mile and draining to the normal 

pool elevation of Lookout Shoals Lake (Critical 

Area) have been revised to Class WS-IV CA. 

(p) The Schedule of Classifications and Water Qualify 

Standards for the Catawba River Basin was amended August 

_L 2000 with the reclassification of Little Grassy Creek (Index 

No. 1 1-29-2). including aU tributaries, from its source to the 

Linville River from Class C Tr to Class C Tr ORW. 

Authority G.S. 143-2 14. 1: 143-215.1: 143-21 5.3(a)(1). 



■k-k-k-k-k-k-k-k-k-k-k-k 



k k k k k -k k 



Notice is hereby given in accordance with G.S. 150B-21.2 
that the DENR - Environmental Management 
Commission to amend rule cited as 15A NCAC 20 .0702. 
Notice of Rule-making Proceedings was published in the 
Register on December 15. 1998. 

Proposed Effective Date: July 1. 2000 

A Public Hearing will be conducted at 7:00 p.m. on May 6. 
1999 at the Davidson County Governmental Center 913 
Greensboro St.. Lexington. NC 27292. 

Reason for Proposed Action: 15A NCAC 20 .0702. 
Exemptions, of the North Carolina air toxics rules is proposed 
for amendment to exempt wood furniture manufacturing 
operations that are complying with the federal maximum 
achievable control technolog}- (MACT) requirements in 40 
CRF Part 63 Subpart JJ from demonstrating compliance with 
the state health-based air toxics rules unless an individual 
source or facility is brought under the program by call of the 
Director of the Division of Air Quality. The amendment is 
proposed in response to a request from the .American 
Furniture Manufacturers Association (AFM.4) who submitted 
a modeling demonstration for the largest emitting furniture 
manufacturing facilit}' in the state which showed no 
exceedances of any current acceptable ambient level for any 
toxic air pollutant currently listed. 

Comment Procedures: .411 persons interested in these matters 
are invited to attend the public hearing. Any person desiring 
tj) comment for more than three minutes is requested to submit 
a written statement for inclusion in [he record of proceedings 
Ql the public hearing. The hearing officer may limit oral 
presentation lengths to five minutes if many people want to 
speak. The hearing record will remain open until May 17, 
1999. to receive additional written statements. To be 
included, the statement must be received by the Division by 
May 17. 1999. 

NOTE: In addition to the proposed amendment, the 
Environmental Management Commission (EMC) is soliciting 
specific comment on the issue of whether or not rule language 
requiring a five year periodic review by Division of Air 
Qualit}- staff of the continuing appropriateness of the 
exemption should be incorporated into the final rule 



amendment. 

INFORMATION: Copies of the proposals may be revicM'ed at 
the regional offices of the North Carolina Department of 
Environment and Natural Resources. Division of Air Qualit}; I 
located at the following cities: 

Asheville 828/251-6208 

Fayetteville 910/486-1541 

Mooresville 704/663-1699 
Raleigh 919/571-4700 

Washington 252/946-6481 

Wilmington 910/395-3900 
Winston-Salem 336/771-4600 
Comments should be sent to and additional information 
concerning the hearing or the proposal may be obtained by 
cotitacting: Mr Thomas C Allen. Division of Air Qualitw 
PO. Box 29580. Raleigh. North Carolina 27626-0580~Phone: 
(919) 733-1489 Fax: (919) 715-7476: E-mail: 
thom_allen'ci aq.enr state, nc. us 

Fiscal Note: This Rule does not affect the expenditures or 
revenues of state or local government funds. This Rule does 
not have a substantial economic impact of at least five million 
dollars ($5,000,000) in a 12-month period. 

SUBCHAPTER 2Q - AIR QUALITY PERMIT 
PROCEDURES 

SECTION .0700 - TOXIC AIR POLLUTANT 
PROCEDURES 

.0702 EXEMPTIONS 

(a) A permit to emit toxic air pollutants shall not be 
required under this Section for: 

( 1 ) residential wood stoves, heaters, or fireplaces; 

(2) hot water heaters that are used for domestic 
purposes only and are not used to heat process 
water: 

(3) maintenance, structural changes, or repairs that do 
not change capacity of that process, fuel-burning, 
refuse-burning, or control equipment, and do not 
involve any change in quality or nature or increase 
in quantity of emission of any regulated air pollutant 
or toxic air pollutant; 

(4) housekeeping activities or building maintenance 
procedures, including painting buildings, resurfacing 
floors, roof repair, washing, portable vacuum 
cleaners, sweeping, use and associated storage of 
janitorial products, or non-asbestos bearing 
insulation removal; 

(5) use of office supplies, supplies to maintain copying 
equipment, or blueprint machines; 

(6) paving parking lots; 

(7) replacement of existing equipment with equipment 
of the same size. type, and function that does not 
result in an increase to the actual or potential ^ 
emissions of anN regulated air pollutant or toxic air ^ 
pollutant and that does not affect compliance status 
and. with replacement that fits the description of the 



1735 



NORTH CAROLINA REGISTER 



April 15, 1999 



13:20 



PROPOSED RULES 



existing equipment in the permit, including the 
application, such that the replacement equipment 
can be operated under that permit without any 
changes to the permit; 

(8) comfort air conditioning or comfort ventilation 
systems that does not transport, remove, or exhaust 
regulated air pollutants to the atmosphere; 

(9) equipment used for the preparation of food for direct 
on-site human consumption; 

(10) non-self-propelled non-road engines. except 
generators, regulated b> rules adopted under Title II 
of the federal Clean Air Act; 

(11) stacks or vents to prevent escape of sewer gases 
from domestic waste through plumbing traps; 

(12) use of fire fighting equipment; 

(13) the use for agricultural operations b> a fanner of 
fertilizers, pesticides, or other agricultural chemicals 
containing one or more of the compounds listed in 
ISA NCAC 2D .1104 if such compounds are 
applied according to agronomic practices acceptable 
to the North Carolina Department of Agriculture and 
the Commission; 

(14) asbestos demolition and renovation projects that 
comply with 15A NCAC 2D .1110 and that are 
being done by persons accredited by the Department 
of Health and Human Services under the Asbestos 
Hazard Emergency Response Act; 

(15) farm and pet incinerators used only to dispose of 
dead animals as identified in 15A NCAC 2D 
.1201(d) and (e). 

( 1 6) refrigeration equipment that is consistent with 
Section 601 through 618 of Title VI (Stratospheric 
Ozone Protection) of the federal Clean Air Act, 40 
CFR Part 82, and any other regulations promulgated 
by EPA under Title VI for stratospheric ozone 
protection, except those units used as or with air 
pollution control equipment; 

(17) laboratorv' activities: 

(A) bench-scale, on-site equipment used 
exclusively for chemical or physical anaKsis 
for quality control purposes, staff instruction, 
water or wastewater analyses, or non- 
production environmental compliance 
assessments; 

(B) bench scale experimentation, chemical or 
physical anahses. training or instruction from 
nonprofit. non-production educational 
laboratories; 

(C) bench scale experimentation, chemical or 
physical analyses, training or instruction from 
hospital or health laboratories pursuant to the 
determination or diagnoses of illnesses; and 

(D) research and development laboratory,' 
activities that are not required to be permitted 
under Section .0500 of this Subchapter 
provided the activitv' produces no commercial 
product or feedstock material; 

(18) combustion sources as defined in 20 .0703 until 18 



(19) 



20) 
21) 



p- 



(23) 



(3^124 



months after promulgation of the MACT or GACT 
standards for combustion sources. (Within 18 
months following promulgation of the MACT or 
GACT standards for combustion sources, the 
Commission shall decide whether to keep or remove 
the combustion source exemption. If the 
Commission decides to remove the exemption, it 
shall initiate rulemaking procedures to remove this 
exemption.) 
storage tanks used only to store: 

(A) inorganic liquids with a true vapor pressure 
less than 1.5 pounds per square inch absolute; 

(B) fuel oils, kerosene, diesel, crude oil, used 
motor oil, lubricants, cooling oils, natural gas, 
liquefied petroleum gas. or petroleum 
products with a true vapor pressure less than 
1.5 pounds per square inch absolute; 

dispensing equipment used solely to dispense diesel 

fuel, kerosene, lubricants or cooling oils; 

portable solvent distillation systems that are 

exempted under 15A NCAC 20 .0102 (b)(l)(l); 

processes: 

(A) small electric motor bum-out ovens with 

secondary combustion chambers or 

afterburners; 

small electric motor bake-on ovens; 

bum-off ovens for paint-line hangers with 

afterburners; 

hosier}, knitting machines and associated lint 

screens, hosier> dr>ers and associated lint 

screens, and hosiery dyeing processes where 

bleach or solvent dyes are not used; 

blade wood planers planing onK' green wood; 

saw mills that saw no more than 2.000.000 

board feet per \ear provided onK green wood 

is sawed; 

perchloroeths lene drycleaning processes with 

12-month rolling average consumption of: 
(i) less than 1366 gallons of 
perchloroethN lene per \ ear for facilities 
w ith dPi-to-dn. machines only; 

(ii) less than 1171 gallons of 
perchloroethylene per year for facilities 
with transfer machines only; or 

(iii) less than 1171 gallons of 

perchloroethylene per \ear for facilities 

with both transfer and dry-to-dr\ 

machines; 

wood fumiture manufacturing operations as defined 

in 40 CFR 63.801(a) that comply with the emission 

limitations and other requirements of 40 CFR Part 

63 Subpart J.I, provided that the temts of this 

exclusion shall not affect the authorit\ of the 

Director under 1 5A NCAC 20 .0712; 

gasoline dispensing facilities or gasoline service 

station operations that compK with 15A NCAC 2D 

.0928 and .0932 and that receive gasoline from bulk 

gasoline plants or bulk gasoline temiinals that 



(B) 
(C) 

(D) 



(E) 
(F) 



(G) 



13:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1736 



PROPOSED RULES 



comply with ISA NCAC 2D .0524, .0925, .0926, 
.0927, .0932. and .0933 via tank trucks that comply 
with 15A NCAC 2D .0932: 
f244 (25) the use of ethylene oxide as a sterilant in the 
production and subsequent storage of medical 
devices or the packaging and subsequent storage of 
medical devices for sale if the emissions from all 
new and existing sources at the facility described in 
ISA NCAC 2D .0538(d) are controlled at least to 
the degree described in ISA NCAC 2D .0538(d) and 
the facility complies with ISA NCAC 2D .0S38(e) 

and(0; 

f5S4 (26) bulk gasoline plants, including the storage and 
handling of fuel oils, kerosenes, and jet fuels but 
excluding the storage and handling of other organic 
liquids, that comply with ISA NCAC 2D .0524, 
.0925, .0926, ,0932, and .0933; unless the Director 
finds that a permit to emit toxic air pollutants is 
required under this Section for a particular bulk 
gasoline plant; or 

(34^ (27) bulk gasoline terminals, including the storage and 
handling of fuel oils, kerosenes, and jet fuels but 
excluding the storage and handling of other organic 
liquids, that comply with ISA NCAC 2D .0524, 
.0925, .0927, .0932, and .0933 if the bulk gasoline 
terminal existed before November I, 1992; unless: 

(A) the Director finds that a permit to emit toxic 
air pollutants is required under this Section 
for a particular bulk gasoline terminal, or 

(B) the owner or operator of the bulk gasoline 
terminal meets the requirements of ISA 
NCAC 2D .0927(1): 

(b) Emissions from the activities identified in 
Subparagraphs (a)(33-)(24J through (a)^3^(27) of this Rule 
shall be included in determining compliance with the toxic air 
pollutant requirements in this Section and shall be included in 
the permit if necessary to assure compliance. 

(c) The addition or modification of an activity identified in 
Paragraph (a) of this Rule shall not cause the source or facility 
to be evaluated for emissions of toxic air pollutants. 

(d) Because an activity is exempted from being required to 
have a permit does not mean that the activity is exempted from 
any applicable requirement or that the owner or operator of the 
source is exempted from demonstrating compliance with any 
applicable requirement. 

Authority G.S. I43-2l5.3(a)(l ): 143-215. lOS: N3B-282: S. L 
1989. c. 168. s. 45. 



A Public Hearing will be conducted at 7:00 p.m. on May 18. 
1999 at the Halifax Count}- Community' College. 
Administrative Building, Room 108. Weldon. North Carolina. 

Reason for Proposed Action: To set/amend the rules in 
inland fishing waters for primary nurse?y areas which are 
necessary to manage and conserve the resource. The Wildlife 
Resources Commission may adopt this as a temporary rule 
pursuant to G.S. 15-B-21.1fal) following the abbreviated 
notice as indicated in the Notice of Rule-making Proceedings 
or following the public hearing and public comment period as 
indicated in this notice. 

Comment Procedures: Interested persons ma}' present their 
views either orally or in writing at the hearing. In addition, 
the record of hearing will be open for receipt of written 
comments from April 15. 1999 to May 25. 1999. Such written 
comments must be delivered or mailed to the NC Wildlife 
Commission, 512 N. Salisbury Street, Raleigh, North Carolina 
27604-1188. 

Fiscal Note: These Rules do not affect the expenditures or 
revenues of state or local government funds. These Rules do 
not ha\'e a substantial economic impact of at least five million 
dollars iS 5. 000. 000) in a 12-month period. 

CHAPTER 10 - WILDLIFE RESOURCES AND WATER 
SAFETY 

SUBCHAPTER IOC - INLAND FISHING 
REGULATIONS 

SECTION .0500 - PRIMARY NURSERY AREAS 

.0501 SCOPE AND PURPOSE 

To establish and protect those fragile inland waters which 
support embryonic, larval and juvenile populations of 
economically important s e afood estaurine fish species, this 
Rule will set forth permanent nursery areas in inland fishing 
waters as defined through extensive survey sampling 
conducted by personnel of the Wildlife Resources Commission 
or the Division of Marine Fisheries. Nursery areas are 
necessary for the early growth and development of virtually all 
of North Carolina's important seafood species. Nursery areas 
need to be maintained, as much as possible, in their natural 
state, and the populations within them must be permitted to 
develop in a normal manner with as little interference from 
man as possible. 



•kitititifit'k'k 



■k "k "k "k "k "k "k 



.Authorities 113-132: 113-134 



Notice is hereby given in accordance with G.S. 1 50B-21 .2 
thai the North Carolina Wildlife Resources Commission 
intends to amend the rules cited as 15A NCAC IOC .0501- 
.0503. Notice of Rule-making Proceedings was published in 
the Register on January 15. 1999. 

Proposed Effective Date: July 1. 2000 



.0502 PRIMARY NURSERY AREAS DEFINED 

Primary nursery areas are defined as those areas in which 
yeung inhabited by the embr\onic. larval or juvenile life stages 
of marine fish or crustaceans spend a major portion of th e ir 
initial growing s e a s on due to favorable food, cov e r, bottom 
typ e , salinity, t e mperatur e , or other factors physical, chemical 
or biological factors . 



1737 



NORTH CAROLINA REGISTER 



April 15, 1999 



13:20 



PROPOSED RULES 



Authorin-G.S. 1 13-132: 113-134. 

.0503 DESCRIPTIVE BOUNDARIES 

The following waters have been designated as primary 
nursery areas: 

(1) North River: 

(a) Broad Creek - Camden County - Entire 
stream; 

(b) Deep Creek - Currituck Counts - Entire 
stream; 

(c) Lutz Creek - Currituck County - Entire 
stream. 

(2) Alligator River: 

(a) East Lake - Dare Count> - Inland waters 
portion; 

(b) Little Alligator River - Tyrrell County - Entire 
stream. 

(3) Currituck Sound: 

(a) Martin Point Creek - Dare County - Entire 
stream (Jean Quite Creek); 

(b) Tull Creek and Bay - Currituck Count)' - Tull 
Bay to mouth of Northwest River; Tull Creek 
fi-om mouth upstream to SR 1222 bridge. 

(4) Pamlico River: 

(a) Duck Creek - Beaufort County - Entire 
stream; 

(b) Bath Creek - Beaufort Counts - Entire stream; 

(c) Mixons Creek - Beaufort County - Entire 
stream; 

(d) Porter Creek - Beaufort County - Entire 
stream; 

(e) Tooleys Creek - Beaufort Count> - Entire 
stream; 

(f) Jacobs Creek - Beaufort County - Entire 
stream; 

(g) Jacks Creek - Beaufort Count}' - Entire 
stream; 

(h) Bond Creek - Beaufort County - Entire 

stream; 
(i) Muddy Creek - Beaufort Count)' - Entire 

stream; 
(j) Strawhom Creek - Beaufort County - Entire 

stream; 
(k) South Prong Wright Creek - Beaufort County 

- Entire stream; 
(I) Jordan Creek - Beaufort Count) - Entire 

stream. 

(5) Neuse River: 

(a) Slocum Creek - Craven County - Entire 
stream; 

(b) Hancock Creek - Craven County - Entire 
stream. 

(6) New River: 

(a) French Creek - Onslow Counts - Entire 
stream; 

(b) New River - Onslow County - US Highway 
1 7 bridge to point 0.75 miles upstream. 

(7) Roanoke River: Halifax and Northampton counties 



- US 258 bridge to Roanoke Rapids dam. 
Aitthorin' G.S. 113-132: 113-134. 



A******** 



******** 



Notice Is hereby given in accordance with G.S. 1 50B-21.2 
that the ENR-Commission for Health Services intends to 
amend the rule cited as 15.4 NC.AC 18.4 . 1611. Notice of Rule- 
making Proceedings was published in the Register on 
December 15. 1998. 

Proposed Effective Date: .4iigust 1. 2000 

A Public Hearing will be conducted at 9:00 a.m. on May 4, 
1999 at the Archdale Building. Groundfloor Hearing Room, 
512 North Salisbury Street, Raleigh, North Carolina. 

Reason for Proposed Action: The proposed rule will 
provide specific guidelines for waiving the existing water 
supply well setback requirements contained in 15A NC.4C 18.4 
. 1 720 for institutions and facilities located in single-family 
dwellings in accordance to SB 1171. This Rule will replace 
the temporaiy rule already in effect. 

Comment Procedures: Written comments will be accepted 
through May I'. 1999 and may be submitted to Mr Bart 
Campbell. DENR, Division of Environmental Health. PO Box 
29534, Raleigh. NC 27626-0534. Oral comments will be 
received at the public hearing. 

Fiscal Note: 777/5 Rule does not affect the expenditures or 
revenues of state or local government funds and does not have 
a substantial economic impact of at least five million dollars 
(55.000,000) in a 12-month period 

CHAPTER 18 - ENVIRONMENTAL HEALTH 

SUBCHAPTER ISA - SANITATION 

SECTION .1600 - SANITATION OF RESIDENTIAL 
CARE FACILITIES 

.1611 WATER SUPPLY 

(a) Water supplies shall meet the requirements in I5A 
NCAC 18A r+^fOOr .1700; however wells shall be approved 
without meeting the setback to building foundation 
requirements found jn ISA NCAC ISA .1720. if water 
sampling in accordance with Paragraph (b) of this Rule does 
not indicate a health threat. 

(b) At least once a year, samples of water shall be collected 
by the Department and submitted to the North Carolina State 
Laboratory of Public Health or other laboratorv certified by the 
Department to perform examinations for Nitrates and Coliform 
bacteria. How e ver If the well s upply se rv e s a family fost e r 
hom e or a privat e r es id e nc e r e gu l at e d by th ese Ru le s and th e 
weH is located at l e a s t 10 f ee t but less than 25 feet from a 



13:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1738 



PROPOSED RULES 



building foundation, the well shall also be sampled for 

p e sticid e s, nitrat e s, and bact e ria pesticides upon application 

for licensure or approval. After the initial pesticide sample is 

collected and analyzed, the well shall be sampled again for ■ 

pesticides following any treatment for structural pests. 

(c) No backflow connections or cross connections with 
unapproved supplies shall exist. 

(d) Adequate hot water heating facilities shall be provided. 
Hot and cold running water under pressure shall be provided to 
food preparation areas and any other areas in which water is 
required for cleaning. 



Authority G.S. 95-225: 130.4-5(3); 130A-230: 130A-235: 
130A-236: 130A-248: I30A-257. 



1739 NORTH CAROLINA REGISTER April 15, 1999 13:20 



TEMPORAR Y RULES 



The Codifier of Rules has entered the following temporary rule(s) in the North Carolina Administrative Code. Pursuant to 
G.S. 150B-21.1le). publication of a temporary rule in the North Carolina Register serves as a notice of rule-making 
proceedings unless this notice has been previously published by the agency 



TITLE 15A - DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES 

Rule-making Agency: Commission for Health Services 

Rule Citation: 15.4 NCAC ISA . 1810 

Effective Date: March 18. 1999 

Findings Reviewed and Approved by: Beecher R. Gray 

Authority for the rule-making: G.S. 130.4-248 

Reason for Proposed Action: .4mending the current rule is necessary to broaden the temperature range requirements for hot 
water in lodging operations. Ne^\^ and existing lodging operations are currently finding it extremely difficult to meet the four 
degree range in temperature allowed in the rule. 

Comment Procedures: Written comments may be submitted to Mrs. Susan Grayson. DENR. Division of Environmental Health. 
2~28 Capital Boulevard, Raleigh. .Worth Carolina 2" 604. 

CHAPTER 18 - ENVIRONMENTAL HEALTH 

SUBCHAPTER 18A - SANITATION 

SECTION .1800 - SANITATION OF LODGING PLACES 

.1810 WATER SUPPLY 

(a) Water supplies shall meet the requirements in 15A NCAC ISA .1700. 

(b) The water supply used shall he located, constructed, maintained, and operated in accordance with the Commission for 
Health Services' rules governing water supplies. Copies of 1 5 A NCAC 1 8A . 1 700 and 1 5 A NCAC 1 8C mav be obtained from the 
Division of Environmental Health. Department of Environm e nt. Health. Environment and Natural Resources. P.O. Box 27687, 
Raleigh, North Carolina 2761 1-7687. At least once a year, a sample of water shall be collected by the Department and submitted 
to the Division of Laboratory Services or other laborator)' certified by the Department to perform bacteriological examinations. 
However, a water sample is not required for a lodging establishment using a community water suppK regulated under 15A NCAC 
18C. 

(c) Cross-connections with sewage lines or unapproved water supplies or other potential sources of contamination are 
prohibited. 

(d) Hot water heating facilities shall be provided. Hot and cold running water under pressure shall be provided at all times in 
guest rooms, for food preparation areas, and other areas in which water is required for cleaning. 

(e) Hot water in guest rooms shall be provided at a temperature of no less than 1 16°F (46.7°C) and no more than 1 20''F 128°F 
( 18 .9°C). (53.3°C). 

Histoty Note: .4uthorit}' G.S. 130A-248: 
Eff. Februaiy 1. 19:" 6: 
Readopted Eff. December 5. 1977: 

Amended Eff January 1. 1996: September 1. 1990: July 1. 1986; 
Temporary .4mendment Eff. June 22. 1998: 
Temporary .4mendment Expired March 12. 1999: 
Temporaiy .4mendment Eff March 18. 1999. 



13:20 NORTH CAROLINA REGISTER April 15, 1999 1740 



RULES REVIEW COMMISSION 



1 his Section contains the agenda for the next meeting of the Rules Review Commission on Thursday, April 15. 1999, 
10:00 a.m. . at 1307 Glenwood Ave., Assembly Room, Raleigh. NC. Anyone wishing to submit written comment on any 
rule before the Commission should submit those comments to the RRC staff, the agency, and the individual 
Commissioners by Monday, April 12. 1999, at 5:00 p.m. Specific instructions and addresses may be obtained from the 
Rules Review Commission at 9 1 9-733-272 1 . Anyone wishing to address the Commission should notify the RRC staff and 
the agency at least 24 hours prior to the meeting. 



% 



RULES REVIEW COMMISSION MEMBERS 



Appointed by Senate 

Teresa L. Smallwood, Vice Chairman 
John Arrowood 

Laura Devan 

Jim Funderburke 

David Twiddy 



Appointed by House 

Paul Powell. Chairman 

Anita White. 2"" Vice Chairman 

Mark Garside 

Steve Rader 

George Robinson 



RULES REVIEW COMMISSION MEETING DATES 



April 15. 1999 
May 20, 1 999 
June 17, 1999 
July 15. 1999 
August 19, 1999 



September 16, 1999 
October 21, 1999 
November 18, 1999 
December 16, 1999 



LOG OF FILINGS 
RULES SUBMITTED: FEBRUARY 20, 1999 THROUGH MARCH 20, 1999 



AGENCY/DIVISION 



RULE NAME 



DENRAVILDLIFE RESOURCES COMMISSION 

Migratory Game Birds 

Big Game Kill Reports 

Bear 

Deer (White-Tailed) 

Raccoon and Opossum 

Wild Turkey (Bearded Turkeys Only) 

Foxes (Gray and Red) 

Open Seasons 

Special Regulations Joint Waters 

Public Mountain Trout Waters 

Open Seasons: Creel and Size Limits 

Manner of Taking Nongame Fishes: 

General Regulations Regarding Use 

Hunting on Game Lands 

Stanly County 

Carteret County 

DENR/COMMISSION FOR HEALTH SERVICES 

Lobby: Halls:Stairs: and Vending Areas 
Water Supply 
Guest Rooms 



RULE 




ACTION 


15NCAC lOB 


.0105 


Amend 


15NCAC lOB 


.0113 


Amend 


15NCAC lOB 


.0202 


Amend 


i5NCAC lOB 


.0203 


Amend 


15NCAC lOB 


.0205 


Amend 


15NCAC lOB 


.0209 


Amend 


15NCAC lOB 


.0212 


Amend 


15NCAC lOB 


.0302 


Amend 


15NCAC IOC 


.0107 


Amend 


15NCAC IOC 


.0205 


Amend 


15NCAC IOC 


.0305 


Amend 


15NCAC IOC 


.0401 


Amend 


15NCAC lOD 


.0102 


Amend 


15NCAC lOD 


.0103 


Amend 


15NCAC lOF 


0317 


Amend 


15NCAC lOF 


0330 


Amend 


15NCAC 18A 


.1808 


Amend 


1 5 NCAC 1 8A 


.1810 


Amend 


15NCAC 18A 


.1812 


Amend 



1741 



NORTH CAROLINA REGISTER 



April 15, 1999 



13:20 



RULES REVIEW COMMISSION 



TRANSPORTATION, DEPARTMENT OF/DIVISION OF HIGHWAYS 

General Regulations for Drawbridges 1 9 NCAC 2D .04 1 5 Amend 

STATE BOARDS/NC STATE BOARD OF CHIROPRACTIC EXAMINERS 

Examinations 21 NCAC 10 .0203 Amend 



RULES REVIEW COMMISSION 

March 18, 1999 
MINUTES 

The Rules Review Commission met on March 18. 1999. in the Assembly Room of the Methodist Building. 1307 Glenwood 
Avenue, Raleigh. North Carolina. Commissioners in attendance were Chairman Paul Powell. David R. Twiddy, Steven P. Rader, 
R. Palmer Sugg. Teresa L. SmalKvood. Laura Devan. John Arrowood, Mark P. Garside. and George S. Robinson. 

Staff members present were: Joseph J. DeLuca. Staff Director: Bobby Bryan, Rules Review Specialist; Glenda Gruber; and Sandy 
Webster. 

The following people attended: 

CeliaCox DHHS 

Noah Huffstettler Kilpatrick Stockton 

Daniel Gamer Banking Commission 

Valerie Chaffm Hunton & Williams 

Kathryn Smith Povner & Spruill 

Wendi Odesby Transportation 

Emily Lee Transportation 

APPROVAL OF MINUTES 

The meeting was called to order at 1002 a.m. with Chairman Powell presiding. He asked for any discussion, comments, or 
corrections concerning the minutes of the February 18. 1999 meeting. There being none, the minutes were approved. 

FOLLOW-UP MATTERS 

4 NCAC 3B .0101, .0102, and .0103: COMMERCE/Banking Commission - The rewritten rules submitted by the agency were 
approved by the Commission. Commissioner Arrowood recused himself from any discussion on these rules. 

4 NCAC 3H .0002: COMMERCE/Banking Commission - The rewritten rule submitted b\ the agency was approved b\ the 
Commission. Commissioner Arrowood recused himself from any discussion on this rule. 

10 NCAC 3R .6112: DHHS/Medical Care Commission - The Commission voted to send a letter to the agency requesting that they 
send a letter to this Commission requesting that the rule be returned to them. If this Commission has not received such a letter by 
its next meeting the Commission will treat the previous letter as such a request. 

17 NCAC 68 .0118: DEPARTMENT OF REVENUE - The Commission objected to the rewritten rule submitted by the agency 
for failure to address the original objection. In addition the Commission also made the following decision: Since the rewritten 
rule was not filed within the Rules Review Commission procedural deadline and there was not sufficient time to adequately review 
the submission, it reserves the right at the next meeting to review any other rewritten language for substantive problems. The 
rewritten rule must also be submitted within Rules Review Commission procedures and must address the original objection. If it 
does not meet this submission requirement the Commission shall consider that as an indication that the agency does not intend to 
satisfy the Commission's objection and wants the rule returned. 

^ 2 1 NCAC 46 . 1 804: NC Board of Pharmacy - No action was necessarN' on this rule. 

21 NCAC 57A .0305: NC Appraisal Board - The repeal was approved by the Commission. 

13:20 NORTH CAROLINA REGISTER April 15, 1999 1742 



RULES REVIEW COMMISSION 



LOG OF FILINGS 

Chairman Powell presided over the review of the log and all rules were unanimously approved. 

COMMISSION PROCEDURES AND OTHER MATTERS 

Mr DeLuca introduced Celia Cox who will be replacing Glenda Gruber effective March 29, 1999. Chairman Powell wished Ms. 
Gruber well and thanked her for a job well done. 



The next meeting will be on April 15, 1999. 

The meeting adjourned at 10:47 a.m. 

Respectfully submitted. 
Sandy Webster 



I 



1743 NORTH CAROLINA REGISTER April 15, 1999 13:20 



CONTESTED CASE DECISIONS 



1 his Section contains the full text of some of the more significant Administrative Law Judge decisions along with an 
index to all recent contested cases decisions which are filed under North Carolina's Administrative Procedure Act. 
Copies of the decisions listed in the index and not published are available upon request for a minimal charge by 
contacting the Office of Administrative Hearings. (919) 733-2698. Also, the Contested Case Decisions are a\'ailable on 
the Internet at the following address: http:''wwM\state.nc.us'OAH/hearings'decision caseindex.htm. 



OFFICE OF ADMINISTRATIVE HEARINGS 

Chief .Administrative Law Judge 

JULIAN MANN, III 

Senior .Administrative Law Judge 

FREDG. MORRISON JR. 

ADMINISTRA Til E LA M JUDGES 



Sammie Chess Jr. 
Beecher R. Gray 
Melissa Owens 
Meg Scott Phipps 



Robert Roosevelt Reilly Jr. 
Dolores O. Smith 
Beryl E, Wade 



.\GENC^ 



CASE 
MMBER 



ALJ 



DATE OF 
DECISION 



PI BLISHED DECISION 
REGISTER CITATION 



ADMINISTRATION 

Occaneechi Band of the Saponi Nation V NC Comm of Indian Affairs % DOA 0006 Smith 

Carlton L Coleman \ Administration. Division of Purchase and Contract '58DOA1016 Phipps 
Unique Printing. Inc v NC A&T. Bobb\ E Aldnch. Dir of Purchasing. 98 DOA 1743 Owens 

NC A&T. and Evelyn H Gales. Asst Dir of Purchasing. NC A&T 



12/07/98 
12/16/98 
02/15/99 



13 13 NCR 1075 



ADMINISTRATIVE HEARINGS, OFFICE OF 

Steven Todd McKinnon v Office of Administrative Hearings 

AE( OHOLIC BE\ ERAGE CONTROL COMMISSION 

Alcoholic Beverage Control Commission v Kenneth Jerome 
.Alcoholic Beverage Control Commission v Jesse Jacob Joyner, Jr 
Alcoholic Beverage Control Commission v Trade Oil Company. Inc 
Alcoholic Beverage Control Commission v Las Palmas of Ne\Mon. Inc 
Alcoholic Beverage Control Commission v Pantana Bobs. Inc 
Alcoholic Beverage Control Comm \ Partnership T/A C & J's Shipwreck 
Alcoholic Beverage Control Comm v Abdelhakeem Murauch Saleh 
Alcoholic Beverage Control Comm \ Harold Webster Hadnott 
Alcoholic Beverage Control Commission v Axis Entertainment 
Sokha Huor Ramadneh v .Alcoholic Beverage Control Commission 
•Alcoholic Beverage Control Commission \ Delores W illiams .AInaqib 
Alcoholic Beverage Control Commission \ .A\is Entertainment 
.Alcoholic Beverage Control Commission \ James Aubre\ Stephenson 
Alcoholic Beverage Control Commission v Bridgette Dee Williams 
Alcoholic Beverage Control Commission v Robert Lee, Inc 
Alcoholic Beverage Control Comm v Partnership. T/,A Variety Pic Up #2 1 
Tarus Jackson v Alcoholic Beverage Control Commission 
Linda Melton Hams \ Alcoholic Be\erage Control Commission 
and 
City of Charlotte 
Alcoholic Beverage Control Comm 
Alcoholic Beverage Control Comm 
Alcoholic Beverage Control Comm 
Alcoholic Beverage Control Comm 
.Alcoholic Beverage Control Comm 
Alcoholic Beverage Control Comm 



Simple Elegance Restaurants. Inc 
Daniel Hinton Green 
Zaheer Ahmad Bajwa 
Partnership T/A Club Old Tunes 
Kendall L Brumbv 
Jerald Taft Hov\ell, Jr 



99 OAH 0082 


Phipps 


03/09/99 




97 ABC 1205 


Phipps 


07/23/98 




97 ABC 1438 


Phipps 


06/19/98 




98 ABC 0033 


Reilb 


08/21/98 




98 ABC 01 89 


Grav 


03/12/99 




98 ABC 0293 


ReillK 


09/17/98 


13 11 NCR 933 


98 ABC 0296 


Morrison 


08/19/98 




98 ABC 0308 


Grav 


02/16/99 




98 ABC 0324 


Smith 


12/02/98 




98 ABC 0357*' 


ReilK 


07/02/98 




98 ABC 0382 


Smith 


06/30/98 


13 03 NCR 350 


98 ABC 0392 


Chess 


07/30/98 




98 ABC 0401 »■ 


Reillv 


07/02/98 




98 ABC 0494 


Chess 


09/01/98 




98 ABC 0501 


Reillv 


08/11/98 




98 ABC 0518 


Grav 


08/11/98 




98 ABC 0714 


Morrison 


10/09/98 




98 ABC 0768 


Smith 


07/13/98 




98 ABC 0820 


Owens 


02/26/99 




98 ABC 0850 


Phipps 


10/26/98 




98 ABC 0889 


Morrison 


11/06/98 




98 ABC 0960 


Owens 


10/30/98 




98 ABC 1071 


Owens 


01/29/99 




98 ABC 1158 


Chess 


03/05/99 




98 ABC 1171 


Smith 


12/03/98 





J3:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1744 



CONTESTED CASE DECISIONS 



AGENCY 

Alcoholic Beverage Control Comm v Kendall L Briimh\ 
Alcoholic Beverage Control Commission v Ronald Hardman 
Alton Ollivierra Pern v Alcoholic Beverage Control Commission 
Nedall Hassan Ahmad Hassan v Alcoholic Beverage Control Comm 
Alcoholic Beverage Control Comm v Khaled Mohamad Alzer 
Alcoholic Beverage Control Comm v Abdelhakeem M Saleh 
William Randall Banks v Alcoholic Beverage Control Commission 
Alcoholic Be\ Control Comm v Partnership T/A Alston's Conv Store 
Alcoholic Beverage Control Comm \ Fast Fare. Inc. 
Alcoholic Beverage Control Comm v Frank Talley 
Yahya Ahamed Ahullah Mosed v Alcoholic Beverage Control Comm 
Alcoholic Beverage Control Comm v Cynthia Van Dassan 
Phillip Allen Powell- Monika k Powell, .lana Vlasta Kozlik v Doyle 
D Alley. ABC Commission. Shon Talley, ALE Agent 



CASE 




DATE OF 


MMBER 


AU 


DECISION 


98 ABC 1204 


Chess 


03/03/99 


98 ABC 1249 


Grav 


03/29/99 


98 ABC 1298 


Owens 


11/23/98 


98 ABC 1320 


Gra\ 


03/18/99 


98 ABC 1321 


Grav 


02/05/99 


98 ABC 1341 


Morrison 


02/12/99 


98 ABC 1355 


Grav 


02/10/99 


98 ABC 1374 


Chess 


02/16/99 


98 ABC 1 398 


Grav 


02/02/99 


98 ABC 1452 


Phipps 


02/08/99 


98 ABC 1470 


Chess 


03/05/99 


98 ABC 1478 


Reillv 


03/15/99 


99 ABC 0036 


Smith 


02/23/99 



PI BLISHED DECISION 
REGISTER CITATION 



I 



BOARD OF CONTR.4CTORS 

Heritage Pointe Builders. Inc & Patrick Hannon ^ 



Bd of Contractors 



CRIME CONTROL AND PI BLIC SAFETY 

Loretta Battle \ Crime Victims Compensation Commission 
Cynthia Austin \ Crime Victims Compensation Commission 
Marcella Skaggs v Crime Victims Compensation Commission 
Talmadge E McHenr\ v Crime Victims Compensation Commission 
Linda Caldwell Wiggins v Crime Victims Compensation Commission 
Kenneth T Lylle v Crime Victims Compensation Commission 
Shirley Henry hand v Crime Victims Compensation Commission 
Brenda Jean Thomas v Crime Victims Compensation Commission 
Tareylon L Johnson v Crime Victims Compensation Commission 
Mia Thompson-Clark v Crime Victims Compensation Commission 
Godfrey Akenabor v Crime Victims Compensation Commission 
Terry Ramey d/b/a Ramey's Wrecker Svc v NC State Highway Patrol 
Valine H Thompson v Crime Victims Compensation Commission 
Rutus K Williams v Department of Crime Control & Public Safety 
Aaron .Anouna Pinkney v Crime Victims Compensation Commission 
Faye E Powell v Crime Victims Compensation Commission 
Hubert Lee Grant v Crime Victims Compensation Commission 
Mar\ Elizabeth Troutman v Crime Victims Compensation Comm 
Brenda H Alston \ Crime Victims Compensation Commission 
Shirles P Chen v Crime Victims Compensation Commission 
Lorine Smith v Crime Victims Compensation Commission 
Catherine Walker v Crime Victims Compensation Commission 
Martha Bumpass v Crime Victims Compensation Commission 
Kenneth B Hall. Sr v Crime Victims Compensation Commission 
Dunnie G Smith v Crime Victims Compensation Commission 
Felicia House v Crime Victims Compensation Commission 
Antonia F Jones v OtTice of Administrative Hearings 
Leon A Vereen \ Crime Victims Compensation Commission 
John D Cutshaw v Crime Victims Compensation Commission 

ENGINEERS AND SI R\ E^ ORS, BOARD OF EXAMINERS FOR 

Thomas A Truelove. Jr . PE \ Bd /Examiners/Engineers and Sur\eyors 
Kenneth D Suttles \ Bd /Registration/Engineers and Land Surveyors 

ENVIRONMENT AND NATIRAL RESOIRCES 

Albert C Wright. Jr v EnMronment. Health. & Natural Resources 
Albert C Wright, Jr v Environment. Health. & Natural Resources 
Ladane Williamson and Odell Decarol Williamson v DENR 
Teresa Hetlin v Department of Environment and Natural Resources 
Ronald Prater v Department of Environment and Natural Resources 
Alltel Carolina. Inc v Dept of Environment and Natural Resources 
James F Smith v Department of Environment and Natural Resources 
William Hickman v Department of Environment and Natural Resources 
Hickorv Alliance v Department of Environment and Natural Resources 
and 

Godfrev Lumber Company. Inc 
John M Silvia V Department of Environment and Natural Resources 
Godfrey Lumber Company. Inc v Dept /Environment & Natural Resources 
and 

Hickory Alliance 
Oregon. B Jackson. Brenda R Jackson v Greene Cts HIth Dept . ENR 
Robert G GotT. Sr v Department of Environment and Natural Resources 
Scotland Water Cedar Circle v Environment and Natural Resources 
Womble & Company v Dept of Environment and Natural Resources 
Eric Glenn Harrison v Environment and Natural Resources 



97 LBC 0243 


Phipps 


08/17/98 






97 CPS 0654 


Grav 


08/10/98 






97CPS 1499 


Reilly 


08/12/98 


13 05 NCR 


533 


98 CPS 0065 


Owens 


06/05/98 






98 CPS 01 16 


Grav 


06/24/98 






98 CPS 01 53 


Chess 


08/27/98 






98 CPS 01 76 


Reilly 


07/06/98 






98 CPS 0263 


Morrison 


08/11/98 






98 CPS 0314 


Morrison 


08/11/98 






98 CPS 0327 


Reillv 


09/02/98 






98 CPS 0349 


Chess 


05/14/98 






98 CPS 0427 


Owens 


10/30/98 


13 12 NCR 


1015 


98 CPS 0460 


Smith 


02/22/99 






98 CPS 0674 


Morrison 


11/18/98 






98 CPS 0676 


Morrison 


1 0/23/98 






98 CPS 0699 


Chess 


03/10/99 






98 CPS 0808 


Owens 


08/28/98 






98 CPS 0839 


Morrison 


10/21/98 


13 10 NCR 


853 


98 CPS 0901 


Smith 


11/12/98 






98 CPS 0952 


Phipps 


11/10/98 






98 CPS 1015 


Phipps 


09/17/98 






98 CPS 1050 


Gray 


02/15/99 






98 CPS 1129 


Gray 


02/15/99 






98 CPS 1154 


Gray 


02/15/99 






98 CPS 1170 


Mann 


12/21/98 






98 CPS 1201 


ReilK 


01/04/99 






98 CPS 1273 


Smith 


01/25/99 






98 CPS 1403 


Grav 


01/29/99 






98 CPS 1525 


Chess 


03/03/99 






98 CPS 1646 


Mann 


03/25/99 






98 ELS 0047 


Mann 


11/12/98 


13 12 NCR 


1035 


98 ELS 0099 


Mann 


02/09/99 


13 18 NCR 


1578 


96EHR0610*'" 


Gray 


01/29/99 






96EHR0630*'" 


Gray 


01/29/99 






96EHR 1926 


Gray 


09/01/98 


13 07 NCR 


609 


97 EHR 0409 


Morrison 


07/29/98 






97EHR0451 


Reilly 


07/02/98 






97 EHR 0729 


Gray 


01/28/99 






97 EHR 1 365 


Chess 


07/17/98 






97 EHR 1 388 


Gray 


11/06/98 


13 11 NCR 


928 


97 EHR 1607 


Reilly 


07/17/98 






97 EHR 1 646 


Chess 


06/03/98 






97 EHR 1676 


Reilly 


07/17/98 






98 EHR 0042 


Reilly 


07/02/98 






98 EHR 0072*- 


Grav 


06/25/98 






98 EHR 0236 


Smith 


06/09/98 






98 EHR (B45 


Chess 


11/05/98 






98 EHR 0373 


Reillv 


08/28/98 







% 



1745 



NORTH CAROLINA REGISTER 



April 15, 1999 



13:20 



CONTESTED CASE DECISIONS 



AGENO 

Rohert G Goff. Sr v Department of Environmenl and Natural Resources 
Mid South Water S\stems. Inc v Environment and Natural Resources 
Wilbur E Earp \ Department of Environment and Natural Resources 
Debra Clements v Department of Environment and Natural Resources 
Norell Bahrs v Caneret Ct\ Health Dept , DENR 
Charles Da\ is \ Department of Environment and Natural Resources 
J C Eau V Department of Environment and Natural Resources 
LInicon Concrete. Inc v Dept of Environment and Natural Resources 
Hugh & Bonnie Mills v Dept of Environment and Natural Resources 
Janice Spruill v Department of Environment and Natural Resources 
JM's Professional Construction Svcs . Ltd v DENR 
Ronald E Bennett \ Environment and Natural Resources 
Don W Hunt v Halifax Count% Health Department 
Wayne D Magee v Department of Enxironment and Natural Resources 
Karen J Dixon. Myra Jones. Alphonzo Dixon \ Nash Cts Health Dept 
A&S Construction. Inc v Dept of Environment and Natural Resources 
.^mos Vaughan v Department of Environment and Natural Resources 
Vivian Alderman. Caboose Restaurant v Environment & Nat Resources 

Division of Air Quality 

Sebring De\ . Patrick Queen/John Amirante v DENR. Air Qualit) 
John Beard \ DENR. Division of Air Quality 
Jerri Brvant \ DENR. Division of Air Quality 

Division of Coastal Management 

Preston Warren \ Division of Coastal Management. Wilmington. NC 
Marion T Noe \ DENR. Division of Coastal Management 

Division of Environmental Health 

Gerald P Sigal v DENR. Division of Environmental Health 
Ronnie Lee Hamill v Pitt Ct\ Health Dept . Environmental Health Div 
Joe Scichilone V Crave Natural Resources. Div of Environmental Health 
Ralph R Crotts v Burke Countv En\ Health Dept . Septic Tank Di\ 
Carl D Wicker V Alamance Ct\ Health Dept . En\ Health Division 

Division of Environmental Management 

Sa\e Our Rivers. Inc . et al \ Town of Highlands. EEINR. Env Mgmt . 

William W Cobev. Jr. Secretan 
L'S Dept of the Interior Nafl ParkSvce v Environmental Mgmt Comm 

Division of Marine Fisheries 

Ladv LaShanda Mehin Brvant v EHNR. Division of Marine Fisheries 
Gerald Moore, et al \ DENR. Division of Marine Eisheries 

Division of Solid Waste Management 

Steve Aldndge. et al v DENR, Division of Solid Waste Management 

Division of Hater Quality 

RavmondL Martins DENR. Division of Water Quality 
Riverhills. Inc and W E Dansev. Jr v DENR. Division of Water Quality 
Wbrslev Oil Companies. Inc \ DENR. DW Q. Groundwater Section 
Upchurch. Inc v DENR. Division of Water Quality 
and 

The Sierta Club and Dogwood Alliance 
NC Forestrv Association v DENR. Division of Water Quality 
and 

The Sierta Club and Dogwood Alliance 
Silver Bullet, Inc v DENR, Division of Water Qualit> 

HEALTH AND HIMAN SER\ ICES 

Stanlev C Ochulo v OtT /Administrative Hearings. Mr R Marcus Lodge 

Oliver C Johnson. Hazel T Johnson \ Health and Human Services 

Louise Streater v Health and Human Ser\ ices 

Richard E Lawrence. Rebecca A Lawrence \ Health and Human Services 

John David Brinson v Department of Human Resources 

Stephanie Wade v Department of Health and Human Services 

Carolyn L Freeman v Department of Human Resources 

Otis L Mack. Jr \ Office of Administrative Hearings 

C hristopher Gennano. Lee (iermano v Department of Health 

Carol and Conrad Kunkel \ Department of Human Services 

Donald Wavne Perrv v OtTice of Emergencv Medical Services 

E Jean Woods \ EDS - Medicaid 

Soma Schaefer Jollv v Village Care King. .Autumn Care. DHHS 

Sandra Nelson Molina v Department of Health & Human Services 



CASE 




DATE OF 


PI BLISHED DECISION 


NIMBER 


AU 


DECISION 


REGISTER CITATION 


98 EHR 0448»- 


Grav 


06/25/98 




98 EHR 0548 


Gray 


12/02/98 




98 EHR 0606 


Smith 


10/21/98 




98 EHR 0609 


Owens 


03/18/99 




98 EHR 0884 


Owens 


11/02/98 




98 EHR 0890 


Owens 


11/09/98 




98 EHR 0957 


Gray 


12/11/98 




98 EHR 0990 


Mann 


01/14/99 




98 EHR 1090 


Phipps 


12/08/98 




98 EHR 1215 


ReilK 


01/27/99 




98 EHR 1217 


Owens 


12/21/98 




98 EHR 1237 


Owens 


12/29/98 




98 EHR 1285 


Grav 


12/17/98 




98 EHR 1471 


Phipps 


02/02/99 




98 EHR 1475 


Reilly 


02/10/99 




98 EHR 1476 


Grav 


03/25/99 




98 EHR 1538 


Reillv 


01/15/99 




98 EHR 1690 


Reilly 


03/08/99 




98 EHR 0926 


Phipps 


12/11/98 




98 EHR 1314 


Grav 


01/29/99 




98 EHR 1416 


Wade 


03/01/99 




98 EHR 0177 


Phipps 


10/05/98 




98 EHR 0976 


Smith 


12/02/98 




98 EHR 0051 


Smith 


10/02/98 




98 EHR 1 200 


Smith 


12/29/98 




98 EHR 1286 


Chess 


01/07/99 




98 EHR 1334 


Owens 


01/14/99 




98 EHR 1718 


Wade 


02/03/99 




91 EHR 0377 


Gray 


07/30/98 




98 EHR 04 10 


Smith 


08/20/98 


13 06 NCR 578 


97 EHR 14,59 


Grav 


07/20/98 




98 EHR 0322 


Owens 


10/08/98 


1 3 09 NCR 797 


98 EHR 0665 


Chess 


09/09/98 


13 07 NCR 617 


98 EHR 0590 


Gray 


09/21/98 




98 EHR 0703 


Grav 


03/22/99 


13 20 NCR 1756 


98 EHR 0735 


Chess 


08/24/98 




98 EHR 0776*-' 


Reilly 


03/19/99 


13 20 NCR 1762 


98 EHR 0777*-' 


Reillv 


03/19/99 


13 20 NCR 1762 


98 EHR 0931 


Chess 


08/20/98 




98DHR0021 


Reillv 


06/24/98 




98 DHR 0090 


Gray 


07/08/98 




98DHR0196 


Gray 


06/03/98 




98 DHR 0209 


Phipps 


07/15/98 




98 DHR 0369 


Owens 


08/17/98 




98 DHR 0666 


Reillv 


08/19/98 




98 DHR 0721 


Grav 


08/05/98 




98 DHR 0729 


Phipps 


09/09/98 




98 DHR 0780 


Owens 


07/28/98 




98 DHR 1047 


Smith 


02/25/99 




98 DHR 1097 


Smith 


01/13/99 




98 DHR 1118 


Gray 


10/26/98 




98 DHR 1134 


Chess 


01/07/99 




98 DHR 1243 


Chess 


01/21/99 





13:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1746 



CONTESTED CASE DECISIONS 



AGENCY 

Bemadene Anderson \ Depanment of Health & Human Services 

Chervl Lynn Slalon v Department of Health & Human Services 

Mar\ Barrier v Administrative Hearing 

James Michael Wallace \ Department of Human Resources 

Barbara Jump v Department of Human Services 

Keith Warren Kendall v Nurse Aide Registrv and DHHS 

Wilson Memorial Hospital v Department of Health & Human Services 

Brandy Shea Minton v Markus Lodge, General Counsel 

Reeva Oliver V Board of Nursing, Nursing Asst Registry 

Jackie E Ratliffv Department of Health & Human Services 

Blue Line Promotions, Inc \ Dept of the Secretary of State 

Police Protective Fund V Dept of the Secretary of State 

Community Funding Compan\ v Dept of the Secretan. of State 

Ilyas Mahmood v Department of Health & Human Services 

Division of Child Development 

DulatowTi Presbvlenan Children's Ctr v DHHS, Child Development 
Cookie's Day Care Home, Wonza W Garolds v DHHS, Child Dev 
Cassandra Myers v Division of Child Development 
Theresa McCormick v DHHS, Division of Child Development 
DulatovvTi Presbyterian Children Ctr v DHR, Child Development 
Dora's Child Development Center v Mecklenburg Cty DSS, and DHR 
Victor. Day Care & Learning Ctr , Joe Walters v DHHS, Child Dev 
Four-County Community Services, Inc v Human Resources, Child Dev 
Kandy Kane Day School, Inc v DHHS. Div of Child Development 
Miriam E Cowan (Laurie) \ Health & Human Svcs . Child Development 

Division of Facility Services 

Pearlie W Lawson v DHHS, Facility Svcs . Health Care Personnel Reg 
Annie K Morgan v Health & Human Services . Facility Services 
Mooresv ille Hospital Mgmt Associates. Inc d/b/a Lake Norman Regional 

Medical Center \ DHR, Facility Services, Certificate of Need Section 
and 

Autumn Corporation and McKinley V Jumey 
Warren Moore & Catherine Moore v DHR. Div of Facilitv Services 
Constellation Health Services, Inc and Constellation Senior Serv ices. 

Inc V DHR. Facility Services, Group Care Licensure Section 
and 

Diversified Health Group, LLC and The Innovative Health Group, Inc 
Dialysis Care of NC, LLC, d/b/a Dialysis Care of Rowan Countv 
v DHR, Division of Facility Seuices. Certificate of Need Section 
V Biomedical Applications of NC. Inc d/b/a BMA of Kannapolis d/b/a 
Metrolina Kidney Center of Kannapolis (Lessee) and Metrolina Nephrology 
Associates. PA (Lessor) 
Robin Annette Reavis v Health and Human Svcs . Div of Facility Svcs 
Jennifer Blofeld v DHHS, Facility Svcs , Health Care Personnel Registn. 
Sunlite Retirement Home, Winnie Jane Johnson v DHR. Facility Services 
Helen Shokoti v Health and Human Services. Div of Facility Services 
Ann Davis Rest Home v Group Care Licensure Section 
Diane Lingard v DHR. Facility Svcs, Health Care Personnel Reg 
Kimberly Annette Smith Hull \ DHHS, Division of Facility Sen ices 
Living Centers-Southeast, Inc , Lutheran Retirement Center-Wilimington. 

Inc . and New Hanover Health Care Center L L C v DHHS, Div of 

Facility Services. Certificate of Need Section, 
and 
Devin Partnership and Devin Health Care Associates. LLC. Columbia 

Cape Fear Healthcare Svstem. Limited Partnership, Living Centers 

Southeast, Inc , Lutheran Retirement Center-Wilmington Inc , and 

New Hanover Health Care Center LLC 
Living Centers-Southeast, Inc , Lutheran Retirement Center-Wilimington, 

Inc , and New Hanover Health Care Center LLC v DHHS, Div of 

Facility Services, Certificate of Need Section, 
and 
Devin Partnership and Devm Health Care Associates. LLC. Columbia 

Cape Fear Healthcare System. Limited Partnership. Living Centers 

Southeast. Inc , Lutheran Retirement Center-Wilmington Inc , and 

New Hanover Health Care Center L L C 
Living Centers-Southeast, Inc , Lutheran Retirement Center-Wilimington, 

Inc , and New Hanover Health Care Center L L C v DHHS. Div of 

Facility Services. Certificate of Need Section, 
and 
Devin Partnership and Devm Health Care Associates. LLC. Columbia 

Cape Fear Healthcare Svstem, Limited Partnership, Living Centers 

Southeast. Inc . Lutheran Retirement Center-Wilminaton Inc . and 



CASE 




DATE OF 


NIMBER 


AU 


DECISION 


98 DHR 1257 


Morrison 


12/11/98 


98 DHR 1259 


Smith 


11/30/98 


98 DHR 1287 


Chess 


1 1 /1 9/98 


98 DHR 1340 


Grav 


12/21/98 


98 DHR 1350 


Reilh 


01/20/99 


98 DHR 1368 


Reilly 


01/29/99 


98 DHR 1423 


Reilly 


03/08/99 


98 DHR 1 595 


Smith 


01/06/99 


98 DHR 1604 


Reilly 


02/09/99 


98 DHR 1689 


Reilly 


02/01/99 


98 DHR 1795 


Chess 


03/11/99 


99 DHR 0001 


Chess 


03/11/99 


99 DHR 0002 


Chess 


03/11/99 


99 DHR 0108 


Chess 


03/03/99 


98 DHR 0654 


Grav 


08/06/98 


98 DHR 0946 


Gray 


01/13/99 


98 DHR 0948 


Owens 


09/03/98 


98 DHR 0989 


Smith 


12/29/98 


98 DHR 1112 


Morrison 


10/16/98 


98 DHR 1 1 84 


Phipps 


09/25/98 


98 DHR 1533 


Smith 


01/25/99 


98 DHR 1 534 


Smith 


01/25/99 


98 DHR 1668 


Reillv 


02/24/99 


99 DHR 01 82 


Owens 


03/16/99 


97 DHR 1034 


Becton 


07/30/98 


97 DHR 1046*' 


Phipps 


07/23/98 


97 DHR 1209 


Reillv 


06/23/98 



PI BLISHED DECISION 
REGISTER CITATION 



97 DHR 1279 
97 DHR 1529 



97 DHR 1 



Mann 
Grav 



Phipps 



98 DHR 0245* 



Phipps 



98 DHR 0247*' Phipps 



09/08/98 
06/24/98 



08/31/98 



97 DHR 1672 


Reillv 


08/12/98 




98 DHR 0096 


Grav 


08/21/98 




98 DHR 0124 


Phipps 


06/11/98 




98 DHR 01 73 


Chess 


08/26/98 




98 DHR 0197 


Phipps 


06/23/98 




98 DHR 0214 


Becton 


06/22/98 




98 DHR 0239 


Phipps 


06/23/98 




98 DHR 0244*'- 


Phipps 


11/24/98 


13 12NCR 101 



1 1 /24/98 



11/24/98 



13 12NCR lOlf 



13 12 NCR 1018 



77^7 



NORTH CAROLINA REGISTER 



April 15, 1999 



13:20 



CONTESTED CASE DECISIONS 



AGENCY 

New Hanover Health Care Center LLC 
Rose Mane Spencer s DHHS. Division of Facilitv Services 
Deborah Ann Holt v DHHS. Division of Facility Services 
Columbia Direct Mktg Corp v DHHS. Facihts Svcs . Soltn Lie Br 
Tern Michelle Tyler v Health & Human S\cs. Div of Facility Ser\ ices 
Dons Jones Holmes v DHHS. Facility Svcs. Health Care Personnel Reg 
Annie K Morgan v Health & Human Services . Facility Senices 
Shirley Bowling v DHHS. Facility Senices, Health Care Personnel Reg 
Johnnie F Williams \ DHHS. Dnision of Facility Services 
Bio-Medical Applications of Lumberton. Inc d/b/a BMA of Lumberton. 

d/b/a Lumberton Dialysis Unit (Lessee) and Webb-Lohavichan Rentals 

(Lessor) \ DHHS. Division of Facility Services. Certificate of Need Sec 
and 

Hillchild. LLC and Dialysis Care of NC, LLC d^/a DCNC. LLC 
Bio-Medical Applications of NC. Inc d/b/a Johnston Dialysis Ctr v 

DHHS. Division of Facility Services, Certificate of Need Section 
and 

Hillchild, LLC and Dialvsis Care of NC, LLC d/b/a DCNC, LLC 
Christv Jeton Hall v DHHS, Division of Facility Services 
Hillchild, LLC and Dialvsis Care of NC. LLC d/b/a DCNC, LLC v 

DHHS, Division of Facility Services, Certificate of Need Section 
and 

Bio-Medical Applications of Lumberton, Inc d/b/a BMA of Lumberton, 

d/b/a Lumberton Diahsis Unit (Lessee) and Webb-Lohavichan Rentals ( 
Hillchild, LLC and Dialysis Care of NC, LLC d/b/a DCNC, LLC v 

DHHS, Division of Facility Services, Certificate of Need Section 
and 

Bio-Medical Applications of NC, Inc d/b/a Johnston Dialysis Ctr 
Judith May Gale v DHHS, Division of Facilitv Senices 
Evangeline McBnde v DHR. Division of Facility Services 
Latoma Denise Thomas v DHHS. Division of Facility Services 
Tracey Deirde Gallovvav v DHHS. Facility Svcs . Health Care Per Reg 
.Afi Teauanda Byrd v DHHS. Division of Facility Senices 
Happy Dan's Home. Gladys Cooke v Facility Svcs . Group Care Lie Sect 
Wanda Best v Division of Facility Senices. DHHS 
Iracey Yelverton v DHHS. Division of Facility Senices 
Rose Mane Hadlev \ DHHS. Division of Facility Senices 
Robena Juanita Jones \ DHHS. Division of Facility Senices 
Mona Lisa Lucas v DHHS. Division of Facilitv Services 
Edna Weaver Sav\>er \ DHHS. Division of Facility Sen-ices 
Linda Estes Richardson v DHHS. Division of Facility Senices 
Shirlev L Smith, a/k/a Shirley Lee Turner v DHHS. Facility Senices 
Jeanette Crandal Williams v Health & Human Sen ices. Facility Senices 
Felicia Ozoms v DHHS, Division of Facility Services 
Carolyn Grant v Health & Human Senices, Facility Senices 
Bridgette Taylor v Nurse Aide 1 Program, DFS 
Jamie Jamigan Oaks v DHHS, Division of Facility Senices 
Barbara Davis v DHHS. Division of Facilitv Senices 
Jamila Adukeijie Alghali v Health & Human Senices. Facility Senices 
Dorothy Rea Fisher v Health & Human Senices. Facility Senices 
April F Matthews v Health & Human Senices. Facility Senices 
Virgie Harshavv Stinson v Health Care Personnel Registry 
Valerie Ann Hernandez v DHHS. Division of Facility Senices 
Wanda .^nn Cribb v DHHS. Division of Facilitv Senices 



CASE 




DATE OF 


PI BLISHED DECISION 


NIMBER 


AU 


DECISION 


REGISTER CITATION 


98 DHR 0279 


Chess 


01/07/99 




98 DHR 0348 


Phipps 


06/22/98 




98 DHR 0394 


Morrison 


12/31/98 




98 DHR 0458 


Gray 


08/21/98 




98 DHR 0463 


Gray 


08/21/98 




98 DHR 0496*" 


Phipps 


07/23/98 




98 DHR 0547 


Grav 


11/09/98 




98 DHR 0639 


Reillv 


07/02/98 




98 DHR 0700*-' 


Chess 


02/04/99 





98 DHR 070 1*-" Reillv 



98 DHR 
98 DHR 



Lessor) 
98 DHR 



0706 
0718* 



0719* 



Gray 
Chess 



Reillv 



02/01/99 



10/12/98 
02/04/99 



02/01/99 



98 DHR 0739 


Owens 


12/16/98 


98 DHR 0767 


Chess 


03/04/99 


98 DHR 0809 


Grav 


1 0/23/98 


98 DHR 0824 


Gray 


09/24/98 


98 DHR 0838 


Reillv 


12/29/98 


98 DHR 0885 


Owens 


11/19/98 


98 DHR 0936 


Chess 


01/11/99 


98 DHR 0955 


Owens 


01/04/99 


98 DHR 0970 


Smith 


10/08/98 


98 DHR 1089 


Grav 


1 2/29/98 


98 DHR 1110 


Grav 


01/04/99 


98 DHR nil 


Grav 


01/04/99 


98 DHR 1131 


Chess 


01/07/99 


98 DHR 1132 


Chess 


01/07/99 


98 DHR 1133 


Morrison 


02/18/99 


98 DHR 1173 


Grav 


01/20/99 


98 DHR 1264 


Owens 


02/15/99 


98 DHR 1283 


Mann 


12/14/98 


98 DHR 1284 


Smith 


01/12/99 


98 DHR 1317 


Grav 


12/21/98 


98 DHR 1326 


Wade 


02/16/99 


98 DHR 1349 


Wade 


03/02/99 


98 DHR 1691 


Owens 


03/01/99 


98 DHR 1692 


Grav 


02/10/99 


99 DHR 0088 


Phipps 


03/1 6/99 


99 DHR 0109 


Morrison 


03/26/99 



Division of Medical Assistance 

Charlotte-Mecklenburg Hospital Authority, d/b/a Carolinas Medical Ctr, 
and Harn Mahannah, M D v DHHS, Division of Medical Assistance 
Isaiah Smith, Jr , by/through his Guardian, Lawrence E Thompson, III 

V DHHS, Division of Medical Assistance 
William M Bell, Jr v DHHS. Medical Assistance. Third Party Rec Sec 
.^lic F Schneider, Julia R Hammonds v DHHS, Medical Assistance 
April Dawn Bass v DHHS, Division of Medical Assistance 



97 DHR 0621 Smith 

98 DHR 0273 Gray 

98 DHR 0979 Mann 

98 DHR 0994 Morrison 

98 DHR 1687 Mann 



07/08/98 

12/07/98 

01/13/99 
10/29/98 
01/14/99 



13 I6NCR 1366 



Division of Social Services 

William & Crystal Steakley v DHHS, Division of Social Senices 
Raj I Abdus-Salaam v Department of Human Resources, DSS-DCA 

Child Support Enforcement Section 
William Robert Cameron v Department of Human Resources 
Robert H Black v Guilford Countv Child Support Enforcement 
Dorman E Drake \ Department of Human Resources 
Garrv R McNeill v Department of Human Resources 
Robert Alan Davis v Department of Human Resources 



98 DHR 0076 


Grav 


98 DHR 0771 


Owens 


96CRA 1525 


Grav 


96 CRA 1 548 


Mann 


96CRA 1717 


Smith 


96 CRA 1 743 


Reillv 


96 CRA 1781* 


Phipps 



07/20/98 
07/30/98 



01/11/99 
1 0/09/98 
08/25/98 
1 0/22/98 
08/20/98 



13:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1748 



CONTESTED CASE DECISIONS 



AGENCY 

Michael W White v Depanment of Human Resources 

Troy R Hmmons, Jr v Department of Human Resources 

Marvm A Pike v Depanment of Human Resources 

Mar>' Putnam Averv v DSS, Durham County Child Support Enforcement 

Anthony B Griffin v Department of Human Resources 

Gilbert G Gray v Department of Human Resources 

Jimmy Dorsey v Department of Human Resources 

Herbert Leon Sellers \ Department of Human Resources 

Gregory Boren s Department of Human Resources 

David W Davis v Department of Human Resources 

Dale W Hutchinson V Department of Human Resources 

Kelvin Cherry v Department of Human Resources 

Joe A Lynch v Department of Human Resources 

Gary W Wampler v Department of Human Resources 

Kenneth Bryan Haynes v Department of Human Resources 

Kenneth Eugene Scott v Department of Human Resources 

Mark Owens Frink v Department of Human Resources 

Jeffery Lee Graves v Department of Human Resources 

Donald L Cair. Jr v Department of Human Resources 

Marvin Diggs v Department of Human Resources 

Michael Patrick Dyme v Department of Health & Human Services 

Paula C Freeman v Department of Health & Human Services 

Sherman L Arnold Sr v Department of Health & Human Services 

Clifton Pierce v Department of Health & Human Services 

Dennis Lee McNeill v Department of Human Resources 

Byron O Ashby II v Department of Human Resources 

Hubert L Morrison v Department of Human Resources 

Robert Alan Davis v Department of Human Resources 

Larrv S Robinson v Child Support Enforcement Agency 

Darryl C Thompson v Department of Health & Human Services 

Darryl C Thompson v Department of Health & Human Services 

Michael J Burgess v Department of Human Resources 

Michael Anthony Hill v Depanment of Human Resources 

Joseph L Hill v Department of Human Resources 

Michael A Wilder v Depanment of Human Resources 

Billy Anthony Jr v Department of Human Resources 

James B Benson v Department of Human Resources 

Laurence Wilkes v Department of Human Resources 

Alton D Bagley V Department of Human Resources 

Bemel B Berry Jr v Department of Human Resources 

Darryl Simpkins v Department of Health & Human Services 

Anthony Montgomery \ Department of Human Resources 

Temace Joan Ness v Department of Human Resources 

Joseph Gerard McPhillips \ Department of Human Resources 

Terry Letterman v Department of Human Resources 

Kenneth Pabers v Depanment of Human Resources 

William E Mines \ Depanment of Human Resources 

Christopher Alan v Depanment of Human Resources 

Annette Chipman v Department of Human Resources 

Paul J Mobley. Jr v Department of Human Resources 

Alvin G Piper \ Department of Health & Human Services 

Robert A Shererv Department of Human Resources 

Rodney A Morrison v Department of Human Resources 

Gregory Andre Brown v Department of Health & Human Services 

Rodger Hazen II \ Department of Human Resources 

Marion Amett v Department of Human Resources 

Wade A Burgess v Department of Human Resources 

Robert L Robinson v Department of Human Resources 

Michael William Fisher v Department of Human Resources 

Jamie A Hum v Department of Health & Human Services 

Renardo Jenkins V Department of Human Resources 

Anthony Love v Department of Human Resources 

Eric Baldwin v Depanment of Health & Human Services 

Eddie R Steward v Depanment of Health & Human Serv ices 

Steven Kent Gold v Depanment of Human Resources 

Leroy J Poole v Department of Human Resources 

Hoyal A McLean v Depanment of Health & Human Services 

Michael Bernard Hill v Department of Health & Human Services 

Terry M Cable \ Department of Human Resources 

Charlie RatlitfJr v Department of Health & Human Services 

Donald W Lee v Depanment of Health &. Human Ser\ ices 

Bobby D Cook v Department of Health & Human Services 

John B Hall v Department of Human Resources 

Derrick A Brinton v Depanment of Human Resources 



CASE 




DATE OF 


NUMBER 


ALJ 


DECISION 


96CRA 17S4 


Gray 


09/25/98 


96 CRA 1 798 


Reilly 


08/25/98 


96CRA 1814 


Chess 


09/24/98 


96 CRA 1849 


Momson 


09/01/98 


96 CRA 1855 


Gray 


12/18/98 


96 CRA 1858 


Momson 


10/08/98 


96 CRA 1 862 


Smith 


12/15/98 


96 CRA 1932 


Smith 


11/06/98 


96 CRA 1945 


Gray 


12/14/98 


96 CRA 1976 


Smith 


11/06/98 


96 CRA 1981 


Mann 


08/26/98 


97 CRA 0026 


Gray 


12/14/98 


97 CRA 0045 


Phipps 


10/09/98 


97 CRA 0187 


Smith 


12/15/98 


97 CRA 0444 


Mann 


02/19/99 


97 CRA 1232 


Chess 


11/06/98 


97 CRA 1524 


Mann 


10/09/98 


98 CRA 0137 


Becton 


06/23/98 


98 CRA 0545 


Reillv 


06/08/98 


98 CRA 0588 


Reilly 


06/24/98 


98 CRA 0787 


Gray 


09/1 7/98 


98 CRA 1117 


Smith 


12/18/98 


98 CRA 1152 


Mann 


10/28/98 


98 CRA 1430 


Smith 


01/11/99 


96CSE 1305 


Gray 


06/22/98 


96CSE 1435 


Mann 


07/15/98 


96CSE 1649 


Reilly 


08/12/98 


96CSE 1780'" 


Phipps 


08/20/98 


96CSE 1848 


Gra\ 


11/05/98 


96CSE 1854*" 


Chess 


09/01/98 


96CSE 1902»" 


Chess 


09/01/98 


96CSE 1989 


Mann 


12/10/98 


96CSE2028 


Mann 


08/26/98 


97 CSE 0624 


Chess 


11/06/98 


97CSE1301 


Chess 


07/1 7/98 


97 CSE 1393 


Reilly 


06/24/98 


97 CSE 1 399 


Gray 


12/14/98 


97 CSE 1419 


Gray 


11/17/98 


97 CSE 1424 


Chess 


06/02/98 


97 CSE 1435 


Smith 


06/12/98 


97 CSE 1436 


Chess 


08/11/98 


97 CSE 1442 


Phipps 


06/17/98 


97 CSE 1450 


Momson 


12/09/98 


97 CSE 1467 


Mann 


10/09/98 


97 CSE 1492 


Smith 


06/22/98 


97 CSE 1523 


Mann 


02/19/99 


97 CSE 1527 


Mann 


09/08/98 


97 CSE 1 544 


Chess 


10/16/98 


97 CSE 1545 


Phipps 


07/23/98 


97 CSE 1568 


Phipps 


06/17/98 


97 CSE 1 599 


Phipps 


11/10/98 


97 CSE 1605 


Mann 


07/15/98 


97 CSE 1611 


Gray 


10/23/98 


97 CSE 1656 


Gray 


08/27/98 


97 CSE 1666 


Chess 


07/1 7/98 


97 CSE 1685 


Mann 


12/10/98 


98 CSE 0071 


Momson 


06/12/98 


98 CSE 01 30 


Reilly 


07/15/98 


98 CSE 01 98 


Mann 


02/19/99 


98 CSE 0307 


Momson 


07/06/98 


98 CSE 03 1 


Smith 


06/23/98 


98 CSE 03 12 


Phipps 


06/23/98 


98 CSE 0319 


Phipps 


12/15/98 


98 CSE 0320 


Momson 


02/02/99 


98 CSE 0333 


Momson 


07/01/98 


98 CSE 0375 


Reilly 


07/02/98 


98 CSE 0420 


Smith 


07/29/98 


98 CSE 0421 


Becton 


07/15/98 


98 CSE 0433 


Phipps 


12/09/98 


98 CSE 0449 


Mann 


07/15/98 


98 CSE 0469 


Gray 


11/09/98 


98 CSE 0483 


Reilly 


10/06/98 


98 CSE 0506 


Chess 


07/20/98 


98 CSE 0555 


Smith 


08/07/98 



PI BLISHED DECISION 
REGISTER CITATION 



1749 



NORTH CAROLINA REGISTER 



April 15, 1999 



13:20 



CONTESTED CASE DECISIONS 



AGENCY 

Tabatha D Pate v Department of Human Resources 

Amanda F Blount \ Department of Human Resources 

Gregorv Cart\ (IV #1564206) v Department olHuman Resources 

Gregorv Cart\ (IV #1564166) v Department ot'Human Resources 

John L Bullard V Department of Human Resources 

Frank A Cotton v Department of Human Resources 

Charlie Gra\ Hunt Jr v Department of Human Resources 

Keith D &L.ydiaC Wright v Department of Health & Human Services 

Willie R Cruse v Department of Health & Human Services 

Thomas H Lotze. Jr v Department of Health & Human Services 

Robert L Williams v Department of Human Resources 

Patrick Bass v Department of Health & Human Services 

Tawanna Wheeler v Department of Health & Human Services 

Timothv Kinnev v Department of Health & Human SerMces 

Teresa L Galloway v Department of Health & Human Services 

Michael A Looper v Department of Health & Human Services 

Kenneth E Strickland v Department of Health & Human Services 

Hovl H Bunt Jr \ Department of Health & Human Services 

Vernon Reginald Pinknev v Department of Health & Human Services 

Elijah G Deans v Department of Health & Human Services 

James Howard Alexander v Department of Health & Human Services 

Lee J Coggins \ Department of Human Resources 

Mark J Houlhrook v Department of Health & Human Services 

Henrv A Hartiel. Jr v Department of Health & Human Services 

Amanda F Haviland Blount v Department of Health & Human SerMces 

Deniira JetTries v Department of Health & Human Sen ices 

Brvan L Barksdale v Department of Health & Human Services 

Cleatus Dean Cuthbertson v Department of Human Resources 

Cleatus Dean Cuthbertson v Department of Human Resources 

Karen Mitchell v Department of Human Resources 

Robert S Willett v Department of Health & Human Services 

Judi Devlin v Department of Health & Human Services 

Issac L Huev v Department of Health & Human Serv ices 

Curtis T Brown v Department of Health & Human Services 

Rafael L Garcia v Department of Human Resources 

David Chisolm v Department of Human Resources 

Robert McKoy v Department of Health & Human Services 

Marc R McGahee v Department of Human Resources 

Solomon Freeman v Department of Human Resources 

Bill G Seamans v Scotland Cfv Child Sup Enf -Scotland Counts DSS 

Nelson Lee Allen v Department of Human Resources 

Michael Jefferson v Department of Health & Human Services 

Keith Jerome Greene Jr v Department of Human Resources 

Derrick M Mallety v Department of Human Resources 

David W Autrv V Department of Human Resources 

Cleveland Terry v Department of Human Resources 

Tonv Mitchell Guion v Department of Health & Human Sen'ices 

David Kenneth Kilgore Sr v Department of Human Resources 

Curtis M Threan v Department of Health & Human Services 

Tern L Dedie v Department of Human Resources 

Michael Lashawn McLaurin v Department of Human Resources 

Jeffrey Navares v Department of Human Resources 

Larrv C William \ Department of Health & Human Services 

Joseph R Engelbrecht V Departmenl of Health & Human Services 

Antonio M lownsendv Department of Health & Human Services 

Sammy Rav Smith v Department of Health & Human Services 

Karlos M Gregory v Department of Human Resources 

Marvin C Upchurch v Department of Human Resources 

Vince E Green v Department of Human Resources 

Mark Steven Goodwin v Department of Human Resources 

Enck A L White v Department of Human Resources 

William R Cameron v Department of Human Resources 

Dennis M McDonald v Department of Human Resources 

James Otis Masters v Department of Human Resources 

Paul R Simon V Department of Human Resources 

Vandi Feika v Department of Health & Human Services 

Barnard Jordan v Department of Human Resources 

Milton Jerome McNeil v Department of Human Resources 

Gradv Harold Reasor v Department of Human Resources 

AlejoJ Heller V Department of Human Resources 

Kenneth J Cume v Department of Human Resources 

Ronnie F Davis \ Department of Health & Human Services 

Paul Monroe Covington v Departmenl of Health & Human Services 

Vernon Reginald Pinkney v Department of Health & Human Services 



CASE 




DATE OF 


PUBLISHED DECISION 


NIMBER 


AU 


DECISION 


REGISTER CITATION 


98CSE0556 


Becton 


06/23/98 




98 CSE 0560 


Chess 


07/29/98 




98CSE0561*" 


Phipps 


09/23/98 




98 CSE 0562* '' 


Phipps 


09/23/98 




98 CSE 0569 


Morrison 


08/06/98 




98 CSE 0578 


Gray 


10/08/98 




98 CSE 0607 


Smith 


06/22/98 




98 CSE 0621 


Smith 


02/1 5/99 




98 CSE 0653 


Mann 


08/26/98 




98 CSE 0658 


Phipps 


08/31/98 




98 CSE 0682 


Smith 


06/22/98 




98 CSE 0689 


Owens 


09/18/98 




98 CSE 0691 


Owens 


10/09/98 




98 CSE 0728 


Smith 


09/17/98 




98 CSE 0769 


Becton 


07/30/98 




98 CSE 0783 


Chess 


09/08/98 




98 CSE 081 7 


Mann 


09/08/98 




98 CSE 0818 


Morrison 


09/15/98 




98 CSE 0833 


Owens 


07/29/98 




98 CSE 0867 


Phipps 


07/20/98 




98 CSE 0869 


Reilly 


08/06/98 




98 CSE 0894 


Smith 


08/20/98 




98 CSE 0949 


Smith 


09/08/98 




98 CSE 0975 


Chess 


09/01/98 




98 CSE 0985 


Mann 


11/18/98 




98 CSE 1036 


Morrison 


09/15/98 




98 CSE 1052 


Morrison 


10/09/98 




98 CSE 1072*"' 


Phipps 


01/21/99 




98 CSE 1073*'" 


Phipps 


01/21/99 




98 CSE 1095 


Reillv 


10/06/98 




98 CSE 1153 


Chess 


11/19/98 




98 CSE 1177 


Gray 


12/29/98 




98 CSE 1301 


Owens 


12/11/98 




98 CSE 131 1 


Phipps 


01/22/99 




98 CSE 1353 


Reilly 


01/22/99 




98 CSE 1369 


Smith 


01/22/99 




98 CSE 1371 


Chess 


02/08/99 




98 CSE 1381 


Gray 


02/01/99 




98 CSE 1389 


Mortison 


02/01/99 




98 CSE 1391 


Phipps 


12/09/98 




98 CSE 1407 


Smith 


02/24/99 




98 CSE 1408 


Chess 


01/19/99 




98 CSE 1417 


Gray 


02/10/99 




98 CSE 1420 


Morrison 


02/01/99 




98 CSE 1422 


Owens 


03/03/99 




98 CSE 1424 


Phipps 


01/14/99 




98 CSE 1434 


Chess 


12/28/98 




98 CSE 1444 


Owens 


03/29/99 




98 CSE 1447 


Phipps 


12/18/98 




98 CSE 1458 


Smith 


01/19/99 




98 CSE 1459 


Mann 


02/19/99 




98 CSE 1461 


Grav 


02/10/99 




98 CSE 1469 


Morrison 


02/09/99 




98 CSE 1472 


Owens 


01/05/99 




98 CSE 1473 


Phipps 


01/14/99 




98 CSE 1474 


Reilly 


12/18/98 




98 CSE 1 507 


Smith 


02/09/99 




98 CSE 1508 


Mann 


01/26/99 




98 CSE 1 509 


Chess 


02/01/99 




98 CSE 1510 


Gray 


02/10/99 




98 CSE 151 1 


Mann 


02/19/99 




98CSE15I2 


Gray 


01/25/99 




98 CSE 1513 


Morrison 


01/26/99 




98 CSE I5I4 


Owens 


02/09/99 




98 CSE I5I5 


Phipps 


02/09/99 




98 CSE I5I6 


Reilly 


03/02/99 




98CSEI5I7 


Smith 


02/12/99 




98 CSE 1518 


Mann 


02/19/99 




98 CSE 1519 


Chess 


02/01/99 




98 CSE 1520 


Gray 


02/10/99 




98 CSE 1521 


Mann 


02/19/99 




98 CSE 1 523 


Owens 


12/29/98 




98 CSE 1524 


Phipps 


02/09/99 




98 CSE 1547 


Reilly 


02/19/99 





13:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1750 



CONTESTED CASE DECISIONS 



AGENCY 

Eugene B Patton HI v Department of Human Resources 

Thomas Graham. Jr \ Department of Health & Human Services 

Gerr\ Cant v Department of Human Resources 

Douglas L Law V Department of Human Resources 

Vernon Mclver v Department of Human Resources 

Gerald Pendergrass v Department of Human Resources 

Terain Bordley v Department of Human Resources 

James Calvin Price Jr v Department of Human Resources 

Leon McNair V Department of Human Resources 

Marvm Lee v Department of Human Resources 

Harolds Fairbank v Department of Human Resources 

Harr\' C Rone Jr v Department of Human Resources 

Cesar A Hernandez v Department of Health & Human Services 

Clarence Evans v Department of Human Resources 

Carlton J Hicks v Department of Human Resources 

Ronald E Davis Jr v Department of Human Resources 

Demetrius D Brooks v Department of Human Resources 

Jetferv John Bissonnette v Department of Health & Human Services 

Clarence A Edens. Jr v Department of Health & Human Services 

David Jones. Jr v Department of Human Resources 

Douglas Sanders v Department of Human Resources 

Linton A Durante v Department of Human Resources 

Travis Lamont Stevenson v Department of Human Resources 

Edward T Stanlev v Department of Human Resources 

Jada Ballard v Department of Human Resources 

Reginald Mclver v Department of Human Resources 

Timothv L Arnold, Sr v Department of Human Resources 

Michael Doran Horton v Department of Human Resources 

Mia Marisa Gionzales-Sisk v Department of Human Resources 

Donald L Carr. Jr v Department of Human Resources 

Hughey F Poppell v Department of Human Resources 

James Edward Covington v Department of Human Resources 

Claude A Mayse \ Department of Human Resources 

Terain Bordley v Department of Human Resources 

Qua' Aaron Rich \ Department of Human Resources 

Guy Anthony kelly v Department of Human Resources 

Robert E L Heck v Department of Health & Human Services 

Sandra Ferrell v Department of Health & Human Services 

Bobby L Mills v Department of Human Resources 

Victor Cortez McLendon \ Department of Human Resources 

Datris Nathanael Biagas v Department of Human Resources 

Anthony McRae v Department of Human Resources 

Dennis Warten Everson \ Department of Health & Human Services 

Phillip L King V Department of Health & Human Services 

Albertus Shav\ v Department of Health & Human Services 

Charles Anthony Jacobs v Department of Human Resources 

Johnnv Richardson v Department of Human Resources 

James R Upchurch v Department of Health & Human Services 

Patricia Chambers v Department of Human Resources 

Vickie E Lane v Michael L Adams. Department of Human Resources 

Caria P Robinson v Department of Human Resources 

Rachel D Farmer v Department of Health & Human Services 

Janice Scott Padgett (Fisher) v Department of Human Resources 

Barbara Fanta-Blandme v Department of Human Resources 

Sharon Bnm v Department of Health & Human Services 

Karen White v Department of Human Resources 

Sherry L Hampton \ Department of Human Resources 

Terita M Sharpe v Department of Human Resources 

Sherisse Stancel Kelly v Department of Human Resources 

Melanie D Nickerson \ Department of Health & Human Services 

Ruth McFadden \ Department of Human Resources 

Linda Michelle Jennings v Department of Health & Human Services 

Division of Women 's and Children 's Health 

Khamis A Sirhan v DHHS. Women's/Children's Health, Nutrition Svcs 
Joseph A Nawas v DHHS. Women's/Children's Health, Nutrition Svcs 
Mohamad I Rahman \ DHHS. Womens/Childrens HIth, Nutr Svcs Sect 
Evelyn Powell v Nutrition Services Section 

HI MAN RELATIONS COMMISSION 

NC Human Relations Comm E\ Rel Clarice Dial v Dixie Lee Neusome. 
Jetti Lee. Jackie Lee and Emm Judd 



CASE 




NIMBER 


AU 


98CSE1548 


Smith 


98CSE 1550 


Chess 


9gCSE155l 


Gray 


98CSE 1552 


Mann 


98CSE1559 


Reilly 


98CSE1570 


Gray 


98CSE 1571 


Mann 


98CSE1572 


Morrison 


98CSEI573 


Owens 


98CSE 1574 


Phipps 


98CSE 1575 


Reilly 


98CSEI576 


Smith 


98CSE 1580 


Mann 


98CSE 1584 


Gray 


98CSE1587 


Owens 


98CSE 1589 


Reilly 


98 CSE 1 590 


Gray 


98CSE 1591 


Mann 


98 CSE 1602 


Chess 


98 CSE 1605 


Grav 


98 CSE 1606 


Mann 


98 CSE 1608 


Owens 


98 CSE 1609 


Phipps 


98 CSE 1610 


Reilly 


98 CSE 1614 


Gray 


98 CSE 1629 


Morrison 


98 CSE 1630 


Owens 


98 CSE 1631 


Phipps 


98 CSE 1632 


Ret IK 


98 CSE 1636 


Reilly 


98 CSE 1637 


Gray 


98 CSE 1639 


Morrison 


98 CSE 1642 


Owens 


98 CSE 1 643 


Phipps 


98 CSE 1651 


Smith 


98 CSE 1652 


Mann 


98 CSE 1660 


Grav 


98 CSE 1661 


Mann 


98 CSE 1663 


Mann 


98 CSE 1664 


Morrison 


98 CSE 1681 


Phipps 


98 CSE 1682 


Reilly 


98 CSE 1683 


Smith 


98 CSE 1684 


Mann 


98 CSE 1701 


Mon'ison 


98 CSE 1714 


Phipps 


98 CSE 1731 


Smith 


99 CSE 0103 


Gray 


96 DCS 1944 


Mann 


96 DCS 2 105 


Gray 


97 DCS 0124 


Reilly 


97 DCS 0251 


Phipps 


97 DCS 1219 


Smith 


97 DCS 1486 


Morrison 


97 DCS 1574 


Grav 


98 DCS 0053 


Chess 


98 DCS 0257 


Morrison 


98 DCS 0468 


Morrison 


98 DCS 0508 


Mann 


98 DCS 0593 


Gray 


98 DCS 0675 


Reilly 


99 DCS 0033 


Gray 


98DHR02I9 


Reilly 


98DHR0637 


Phipps 


98 DHR 0923 


Chess 


98DHR 1135 


Smith 


98HRC 1063 


Smith 



DATE OF 
DECISION 

01/26/99 
03/03/99 
03/26/99 
02/19/99 
02/19/99 
01/22/99 
02/19/99 
02/18/99 
02/11/99 
02/19/99 
02/19/99 
01/25/99 
01/13/99 
03/26/99 
02/25/99 
01/26/99 
03/18/99 
03/01/99 
03/03/99 
03/18/99 
01/26/99 
03/26/99 
01/28/99 
03/02/99 
02/10/99 
02/11/99 
03/03/99 
03/05/99 
02/02/99 
03/26/99 
03/1 8/99 
03/1 8/99 
03/03/99 
03/05/99 
02/24/99 
03/16/99 
02/10/99 
03/01/99 
01/20/99 
03/04/99 
03/17/99 
02/09/99 
02/11/99 
03/16/99 
01/05/99 
01/19/99 
02/02/99 
03/26/99 
01/26/99 
07/08/98 
11/10/98 
08/31/98 
07/29/98 
06/22/98 
08/04/98 
12/14/98 
12/01/98 
06/09/98 
12/16/98 
01/19/99 
07/15/98 
03/18/99 



08/11/98 
07/02/98 
11/06/98 
11/13/98 



01/21/99 



PUBLISHED DECISION 
REGISTER CITATION 



13 16 NCR 1369 



JISTICE 



1 751 



NORTH CAROLINA REGISTER 



April 15, 1999 



13:20 



CONTESTED CASE DECISIONS 



AGENCY 

James Todd Tippet v NC Company Police Program 

Alarm Systems Licensing Board 

Claude David Huggins v Alarm Systems Licensing Board 
Ja> Michael RatclitTv Alarm Systems Licensing Board 
Robert Derek Ross v Alarm Systems Licensing Board 
Randy Keith Barr v Alarm Systems Licensing Board 
Barry D Lvrnan v Alarm Systems Licensing Board 

Auctioneer Licensing Board 

Wiley R Tyndall v Auctioneer Licensing Board 
Russ J Scherrer v Auctioneer Licensing Board 
Gavin Haviv Abadi v Auctioneer Licensing Board 

Education and Training Standards Division 

Thomas D\\a\ne Brown \ Sheriffs' Lducation & Traming Standards Comm 
Kenneth Joseph Jackson \ Sheriffs' Education & Training Standards Comm 
Odis Fitzgerald Darden v Sheriffs' Education & Training Standards Comm 
Hoyle Kenneth Wise. Jr v Sheriffs' Education & Training Standards Comm 
Kenneth Earl Brantley v Criminal Justice Ed & Training Stds Comm 
Hearl Oxendine v Criminal Justice Education & Training Stds Comm 
James Earrell Roberts \ Criminal Justice Education & Training Stds Comm 
Phillip Keith McPherson v SheritTs' Education & Training Standards Comm 
Darvl LaMar Bryant v Sheriffs' Education & Training Standards Comm 
Harold F Esters v SheritTs' Education & Training Standards Comm 
William Scott Key v SheritTs' Education & Training Standards Comm 
Cecil W Duke, Jr \ Criminal Justice Education & Training Stds Comm 
Marvin Sherriel Clark v Department of Correction 
and 
Mar\inS Clark v Criminal Justice Ed & Training Stds Comm 
Amado Martinez v Criminal Justice Education & Training Stds Comm 
Johnny Wayne Wills v Criminal Justice Education & Training Stds Comm 
James E Ellerbe \ Sheriffs' Education & Training Standards Comm 
Paul Har\e\ Tav lor \ DOJ, Criminal Justice Ed & Training Stds Comm 
Kenneth Joseph Jackson v Sheriffs' Education & Training Standards Comm 
Kelly Suz^anne Mayberry v Sheriffs' Education & Iraining Stds Comm 
Sharon Day Flemng v Sheriffs' Education & Training Stds Comm 
Robert Ryan Hardison v Sheriffs' Education & Training Standards Comm 
Tracey Jerome Clark \ SheritTs' Education & Training Standards Comm 
Berry Bernard Baker v Criminal Justice Ed & Training Standards Comm 
Evelyn D Broun v Sheriffs' Education & Training Stds Comm 
Kevin Lamar Dorsey v SheritTs' Education & Training Standards Comm 
Richard Alan McEntire v Criminal Justice Ed & Training Stds Comm 
Willoughby McCormick. Jr \ SheritTs' Ed & Training Standards Comm 
Herman Lee Col\ in v SheritTs' Ed & Training Standards Comm 
Ronald Hosea Hodge v Criminal Justice Ed & Training Standards Comm 
Mel'.in Garfield Smith v Criminal Justice Ed & Training Stds Comm 
Paul Har\ey Tavlor v Criminal Justice Ed & Training Stds Comm 
Teresa Shawndell Hunt v Criminal Justice Ed & Training Stds Comm 
Phillip K McPherson v Sheriffs' Education & Training Standards Comm 
Leonard Patterson Limer v SheritTs' Education & Training Stds Comm 
Frankie Arlene Fisher \ SheritTs' Ed & Training Standards Comm 
Floyd Lee Hatch \ Criminal Justice Ed & Training Stds Comm 
Carroll Edwin Swain, Jr v Criminal Justice Ed & Irainmg Stds Comm 
John D Osborne v SheritTs' Education & Training Standards Comm 
Tame L Reid v Criminal Justice Ed & Training Stds Comm 

Private Protective Services Board 

Wayne Carey \ Private Protective Services Board 
Claims Verification. Inc v Private Protective Services Board 
Walter R Shirer v Private Protective Services Board 
Stacey L Williams \ Private Protective Services Board 
Eugene Norman Garrett v Private Protective Sen ices Board 
G Russell Smith V Private Protective Services Board 
David C Brisson v Private Protective Ser\ ices Board 
Danny Charles Garrett v Private Protective Services Board 
David C Iruesdale \ Private Protective Services Board 
Dennis Ray Hyatt \ Private Protective Services Board 
Alfred D Malson \ Private Protective Services Board 
Rodney Hamilton Marsh v Private Protective Services Board 
Melvin Eugene Davis v Private Protective Services Board 
Glen Leon Fitchetle v Private Protective Services Board 
Arvin Itvvaru \ Private Protective Services Board 
William Pope v Private Protective Services Board 



CASE 




NIMBER 


AU 


97 DOJ 1 368 


Phipps 


98 DOJ 0871 


Morrison 


98 DOJ 1 34.5 


Owens 


98 DOJ 1494 


Morrison 


98 DOJ 1495 


Smith 


98 DOJ 1496 


Smith 


97 DOJ 1236 


Phipps 


98 DOJ 0589 


Owens 


98 DOJ 1060 


Smith 


97 DOJ 1 3 1 9 


Phipps 


97 DOJ 1578*' 


Grav 


97 DOJ 1698 


Reillv 


98 DOJ 0022 


Smith 


98 DOJ 0046 


Gray 


98 DOJ 0121 


Smith 


98 DOJ 0147 


Smith 


98 DOJ 0388 


Reilly 


98 DOJ 0430 


Gray 


98 DOJ 043 1 


Gray 


98 DOJ 0432 


Becton 


98 DOJ 0479 


Chess 


98 DOJ 0491*'' 


Phipps 


98 DOJ 0526 


Morrison 


98 DOJ 0574 


Chess 


98 DOJ 0600 


Morrison 


98 DOJ 0841 


Phipps 


98 DOJ 0847*' 


Grav 


98 DOJ 0875 


Chess 


98 DOJ 0877 


Mann 


98 DOJ 0878 


Phipps 


98 DOJ 0879 


Owens 


98 DOJ 0907 


Mann 


98 DOJ 0922 


Mann 


98 DOJ 0930 


Phipps 


98 DOJ 0982 


Owens 


98 DOJ 1 007 


Reillv 


98 DOJ 1 008 


Smith 


98 DOJ 1058 


Smith 


98 DOJ 1059 


Gray 


98 DOJ 1 1 25 


Phipps 


98 DOJ 1 308 


Gray 


98 DOJ 1 360 


Gray 


98 DOJ 1361 


Gray 


98 DOJ 1421 


Chess 


98 DOJ 1441 


Reilh 


98 DOJ 1 502 


Morrison 


98 DOJ 1 529 


Gray 


98 DOJ 1623 


Chess 


98 DOJ 0619 


Owens 


98 DOJ 0848 


Smith 


98 DOJ 0937 


Morrison 


98 DOJ 0938 


Morrison 


98 DOJ 0939 


Morrison 


98 DOJ 0940 


Owens 


98 DOJ 0941 


Owens 


98 DOJ 1081 


Morrison 


98 DOJ 1082 


Morrison 


98 DOJ 1 1 39 


Owens 


98 DOJ 1141 


Morrison 


98 DOJ 1142 


Owens 


98 DOJ 1145 


Morrison 


98 DOJ 1 307 


Owens 


98 DOJ 1493 


Morrison 


98 DOJ 1 748 


Morrison 



DATE OF 
DECISION 



09/10/98 



07/09/98 
11/19/98 
12/10/98 
02/05/99 
12/16/98 



07/24/98 
03/08/99 
10/21/98 



07/29/98 
08/20/98 
06/12/98 
07/14/98 
11/04/98 
06/22/98 
07/16/98 
07/24/98 
07/21/98 
08/21/98 
06/08/98 
10/07/98 
01/08/99 



09/09/98 
07/30/98 
08/07/98 
09/16/98 
08/20/98 
11/13/98 
12/30/98 
09/08/98 
08/31/98 
01/15/99 
12/22/98 
09/22/98 
03/18/99 
10/13/98 
01/07/99 
01/08/99 
01/04/99 
12/30/98 
02/10/99 
01/28/99 
03/16/99 
01/06/99 
02/10/99 
03/22/99 
03/16/99 
01/13/99 



11/19/98 
08/04/98 
09/17/98 
08/18/98 
08/18/98 
11/19/98 
11/19/98 
09/17/98 
12/10/98 
11/19/98 
09/29/98 
11/04/98 
09/22/98 
1 1 /03/98 
12/10/98 
02/09/99 



PI BLISHED DECISION 
REGISTER CITATION 



13 



NCR 935 



13:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1752 



CONTESTED CASE DECISIONS 



AGENCY 

LABOR 

Hildrelh Mechanical & Maintenance v Labor/Labor Standards 
Labor World, Eric Feinstein v Labor, Harr\ H Payne, Jr 

BOARD OF LICENSED PROFESSIONAL COUNSELORS 

Carolyn I Hicks v Board ol Licensed Professional Counselors 

BOARD OF MEDICAL EXAMINERS 

Joe D Crawford, M D v Medical Bd ofNCBd of Medical Examiners 

PI BLIC INSTRUCTION 

Linda & Dannv Howard for Nikki Howard v Lenoir Ct\ Bd of Ed 
George & Ruth Sinclair for Adam Sinclair v Wake Count\ Schools 

(Special Education Ser\ices) 
Nicholas Eirschele, B\ and Lhrought His Parents, Charles & Kathleen 

Eirschele v Craven Counts Board of Education 
Dewitt Brinson & Elizabeth Brinson v Craven County Board of Education 
Gene Edward Lloyd v Department of Public Instruction 
Joseph Hughey Bamnger V Dr Michael Ward, Dept of Public Instruction 
Mrs Phyllis Y Moore v Cumberland County Schools 
Laney Bruce Harrill v State Board of Education 

L K on behalf of her son, J H , as well as on her own behalf \ St Bd /Ed 
Joseph J Sarrerro V Department of Public Instruction 
ME and her husband, PE , individually, and on behalf of their son, C E 

V Bd ofLd tor Buncombe Ck a/k/a Buncombe Cn Public Schools, et al 



CASE 




DATE OF 


NTMBER 


ALJ 


DECISION 


98 DOL 0903 


Mann 


11/04/98 


98DOL 1256 


Gray 


11/05/98 


98LPC 1730 


Chess 


03/05/99 


98 BME 0870 


Owens 


07/30/98 


97EDC 1047 


Grav 


10/30/98 


97 EDC 1 233 


Phipps 


08/11/98 



PUBLISHED DECISION 
REGISTER CITATION 



97 EDC 1234 



Phipps 



07/16/98 



97 EDC 1298 


Phipps 


10/26/98 


98 EDC Olio 


Reilly 


09/10/98 


98 EDC 0127 


Mann 


01/14/99 


98 EDC 0305 


Grav 


08/05/98 


98 EDC 0350 


Smith 


09/17/98 


98 EDC 0370 


Smith 


10/14/98 


98 EDC 0459 


Owens 


08/10/98 


98 EDC 0566 


Grav 


10/01/98 



STATE BAR 

Linda R Sharp v North Carolina State Bar 98 BAR 1 344 Morrison 

Reginald L Frazier v NC St Bar Disc Hearing Comm , NC St Bar CncI 99 BAR 0204 Owens 



11/09/98 
03/08/99 



STATE PERSONNEL 



Department of Administration 

David Grigsby v NC Commission of Indian AtTairs 

Department of Agriculture 

William T McClelland v Department of Agriculture 
William T McClelland v Department of Agriculture 

Communiti- Colleges 

Dr William R Strickland v NC Community College System 

Department of Correction 

Annie D Dizon v NC Correctional (Inst ) Center for Women 

Terry T Rees v Department of Correction 

Mohammad H Baloch, M D v Department of Correction 

Leon Owens v Department of Correction 

Terry T Rees v Department of Correction 

Michael A Smith v Department of Correction 

Michael A Smith v Department of Correction 

Jayne D Bledsoe v Correction, Div of Adult Probation & Parole 

David Spencer Noms v Correction, Div of Adult Probation & Parole 

Carl W Craven, II v Pender Correctional Institution 

Ervin Shaw v Martin Horner, Asst Super , Corr , Sandy Ridge Corr Ctr 

Joseph Szilagyi v Department of Correction 

Dennis S Harrell v Dept of Correction, Caledonia Correctional Institute 

Tommy L Hancock v Department of Correction 

Tommy L Hancock v Department of Correction 

Elaine Jackson v Department of Correction 

Bertha Darden v Raymond Smith & Dept of Correction, Central Prison 

Robert C Lowder v Brown Creek Correctional Institution 

Ruth Moseley v Department of Correction 

Lamont M Burt \ Department of Correction 

Mark Murphy v Correction, Div of Adult Probation & Parole 

Leo Powell v Harnett Correctional Institute, Department of Correction 

Amos Boone \ Department of Correction 

Nona W Hubbard v DOC, Division of Community Corrections 

Robert R Stovall v Department of Correction 

Harold Keith Hamm V Dept of Correction Enterprise/Personnel OtT 

Joseph A Harrell v Correction, Div of Adult Probation & Parole 

Bunny M Poindexterv Department of Correction, McCain Hospital 

Deborah GritTin v Warren Correctional Institution, Mr Smiley 

Lonnie E McCaskill. Ill v Department of Correction 

Bryant K Peterson v Todd Pinion, Piedmont Corr Inst , Asst Sup 



98 DSP 0428 


Morrison 


12/14/98 


98 DSP 1405*-' 


Reillv 


02/17/99 


98 0SPI536'-' 


Reilly 


02/1 7/99 


98OSP1305 


Gray 


12/07/98 


97OSP0166 


Mann 


11/06/98 


97 0SP 1671*-' 


Smith 


06/30/98 


98 DSP 0014 


Gray 


09/01/98 


98 DSP 0050 


Becton 


07/10/98 


98OSP0119*^ 


Smith 


06/30/98 


98OSP0231*" 


Reilly 


08/11/98 


98OSP0317»" 


Reilly 


08/11/98 


98 DSP 0543 


Owens 


07/29/98 


98 DSP 0572 


Gray 


12/18/98 


98 OSP 0633 


Smith 


06/25/98 


98OSP0671 


Phipps 


10/09/98 


98 OSP 0757 


Owens 


10/05/98 


98 OSP 0846 


Morrison 


09/08/98 


98 OSP 0881 


Owens 


08/04/98 


98 OSP 0882 


Owens 


10/09/98 


98 OSP 0883 


Phipps 


03/17/99 


98 OSP 0905 


Smith 


09/25/98 


98 OSP 0984 


Owens 


12/02/98 


98 OSP 1092 


Grav 


10/07/98 


98 OSP 1115 


Smith 


10/06/98 


98 OSP 1 1 55 


Mann 


12/21/98 


98 OSP 11 75 


Owens 


11/25/98 


98 OSP 1188 


Smith 


12/15/98 


98 OSP 1214 


Owens 


10/27/98 


98 OSP 1282 


Phipps 


10/26/98 


98 OSP 1409 


Grav 


12/16/98 


98 OSP 1411 


Grav 


12/11/98 


98 OSP 1 566 


Smith 


02/09/99 


98 OSP 1 583 


Chess 


01/07/99 


98 OSP 1 597 


Morrison 


02/16/99 


98 OSP 1787 


Owens 


02/15/99 



1753 



NORTH CAROLINA REGISTER 



April 15, 1999 



13:20 



CONTESTED CASE DECISIONS 



AGENO 

Charlotte Clarke \ Depanment of Correction 

Crime Control and Public Safety 

Roger D Da\is\ Crime Control & Public Satet>. St Hu\ Patrol 
Albert R Littles Crime Control & Public Saferv. Info S\s Specialists 
Charles A Lindquist v Crime Control & Public SafeU. NC Hwa Patrol 
Charles A Lindquist \ Crime Control & Public Satets. NC H\\\ Patrol 
Charles L Gamer v Crime Control & Public Safet>. NC St H\u Patrol 
I errs L Putman \ Crime Control & Public Safety, State Hwy Patrol 
Thomas E Carlton v Crime Control & Public Safety. St Huy Patrol 

Eastern North Carolina School for the Deaf 

Cathy A Lancaster v Eastern North Carolina School for the Deaf 

Employment Security Commission 

Jane B Bohn and Arlene G Sellers v Employment Security Commission 
Jane B Holm and Arlene G Sellers v EmplosTnent Security Commission 

Environment and Natural Resources 

Charles Anlhons Bruce \ ENR. Division of Parks and Recreation 

Patrick K W Howies Department of Environment and Natural Resources 

Health and Human Services 

Velma Harper s Dept of Health & Human Sen. ices. Casssell Center 

.Annette Honea s Department of Human Resources 

William David Simpson v Macon County Board of Health 

Angela M Miles s Cumberland Count\ Department of Social Sersices 

Shung Fung-Chin v Department of Human Resources, Casssell Center 

Walker Cannon v DHR/Cassvell Center 

Charm Ssvick v Cumberland County Department of Social Sersices 

Yolandra Best and Roy Hudson s DHHS, John Umstead Hospital 

Yolandra Best and Ros Hudson s DHHS. John Umstead Hospital 

Donald Ras Ebron s Department of Human Resources 

Kenneth Dippel s Columbus Count\ Dept of Social Ser\ ices 

I red Foster Jr v Department of Health and Human Services 

Donald Ras Ebron s Depanment of Human Resources 

Shung Fung-Chin v Department of Human Resources. Casssell Center 

RuthHolrosds Montgomers Cty DSS. Children's Sers ices 

1 ilda D W hitaker v Nash County Health Depanment Board of Directors 

Fred Foster. Jr v Depanment of Health and Human Sen ices 

James W Cresss s DHHS. Murdoch Center 

Patricia R Quick v DHHS. Dorothea Di\ Hospital 

Angela M Miles s Cumberland Countv Department of Social Sers ices 

Delores Las erne Rich s Health & Human Services. Dorothea Di\ Hosp 

Elssin C Munson s Health & Human Sersices. Juvenile Evaluation Center 

Fred Foster. Jr v Department of Health and Human Services 

Jackie M Sinclair v Duplin-Sampson Area Mental Health DD. SAS 

David .A Kilpatrick s Health & Human Senices. Casssell Center 

Fred Foster. Jr v Department of Health and Human Services 

Laura Blanton s Cleseland Center 

Anthonv M Ruiz v Department of Health & Human Svcs. Youth Svcs 

Rudolph Waters v DHHS. Youth Services. Dohbs School 

Eussell Falconer v Karen A Andrews. Gaston-Lincoln Area Mental Health 

Jeftrev L Williams s Dorothea Di\ Hospital 

Mmme Barnes Edssards s Pitt Cts Mental Health, Des Disabilities/SA 

Delores Laveme Rich v DHHS, Dorothea Di\ Hospital 

Barbara Jean Paquette s Durham County (respondeat superior for the 

Durham County Public Librars ) 
Linda Paige v Center Point Human Senices Forssih Mental Health 

Forsslh Industrial Systems 
Fred Foster, Jr v Department of Health & Human Services 
Fred Foster. Jr s Department of Health &. Human Services 
Fred Foster. Jr s Department of Health &. Human Sers ices 
Stanley K Strong v Jimms Summers ille. Dobbs School, ^'outh Sscs 
Derrick Skinner v Health & Human Serv ices. Cherry Hospital 
Kelvin J Leeks v Cumberland Ctv Mental Health & Sub Abuse Facility 
Fred Foster. Jr v Depanment of Health & Human Services 
Paul L Long s Department of Health & Human Services 
Fred Foster. Jr v Department of Health & Human Services 
Laurie K Smith v Cabbarrus County Department of Social Services 



CASE 




DATE OF 


PI BLISHED DECISION 


MMBER 


ALJ 


DECISION 


REGISTER CITATION 


')'^OSPOI43 


Osvens 


03/16/99 




97OSP06I7 


Chess 


05/27/98 




QyOSPIISV 


Morrison 


07/22/98 




98OSP0I70 


Gras 


01/22/99 


13 18 NCR 1592 


■jsospoaai 


Gras 


01/22/99 




')8OSP0467 


Monison 


03/12/99 




98OSP0489 


Momson 


02/26/99 




98OSP09I9 


Phipps 


09/24/98 




98OSP0482 


Gray 


11/30/98 




97 0SP 1122'' 


Chess 


06/02/98 




97 0SPI134*' 


Chess 


06/02/98 




98 OSP 0240 


Reills 


06/08/98 




98OSP1240 


Reilly 


02/11/99 




96 OSP 0109 


Chess 


02/02/99 




96 OSP 0833 


Chess 


08/24/98 




97 OSP 0167 


Chess 


01/27/99 


13 17 NCR 1488 


97 OSP 061 3*' 


Gray 


07/10/98 




97OSP0638*"' 


Chess 


08/13/98 




97 OSP 0731 


Phipps 


11/30/98 




97 OSP 0775 


Gray 


07/10/98 




97 OSP 0862*" 


Chess 


08/13/98 




97 OSP 0863*" 


Chess 


08/13/98 




97 OSP 0881*-- 


Phipps 


02/09/99 




97 OSP 0905 


Gras 


11/09/98 




97 OSP 1287*'- 


Smith 


08/20/98 




97 OSP 1406*" 


Phipps 


02/09/99 




97 OSP 1530*'" 


Chess 


08/13/98 




97 OSP 1586 


Smith 


05/27/98 


13 02 NCR 257 


97 OSP 1665 


Gras 


12/02/98 




97 OSP 1701*'- 


Smith 


08/20/98 




98 OSP 0060 


Gras 


07/20/98 




98 OSP 0061 


Becton 


07/16/98 




98 OSP 0084*' 


Gras 


07/10/98 




98 OSP 0120 


Gray 


07/08/98 




98 OSP 0140 


Phipps 


10/28/98 




98 OSP 0187*'- 


Smith 


08/20/98 




98 OSP 0252 


Smith 


12/31/98 




98 OSP 0271 


Osvens 


08/13/98 




98 OSP 0403*'- 


Smith 


08/20/98 




98 OSP 0453 


Smith 


10/02/98 




98 OSP 0454 


Gras 


06/04/98 




98 OSP 0474 


Momson 


07/30/98 




98 OSP 0538 


ReilK 


08/06/98 




98 OSP 0595 


Becton 


07/22/98 




98 OSP 0684 


Gras 


03/15/99 




98 OSP 0763 


Gras 


12/02/98 




98 OSP 0765 


Morrison 


08/05/98 




98 OSP 0819 


Smith 


11/05/98 




98 OSP 1012*-' 


Gray 


03/18/99 




98 OSP 1013*-' 


Gray 


03/18/99 




98 OSP 1014'-' 


Gray 


03/18/99 




98 OSP 1017 


Gras 


1 2/07/98 




98 OSP 1035 


Gras 


09/21/98 




98 OSP 1037 


Momson 


02/11/99 




98 OSP 1075*" 


Gras 


03/18/99 




98 OSP 1202 


Osvens 


12/16/98 




98 OSP 1218*-' 


Gra\ 


03/18/99 




98 OSP 1617 


Rciily 


03/03/99 





Consolidated Cases. 



13:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1754 



CONTESTED CASE DECISIONS 



AGENCY 

Department of Insurance 

Palricia Casey Rollins v Department ol Insurance 

Department of Justice 

Linda Margaret Koss v State Bureau of Investigation 
Marvin Sherriel Clark v Department of Correction 
and 
Marvin S Clark v Criminal Justice Ed & Traimne Stds Comm 



CASE 




NUMBER 


AU 


95 OSP 0729 


Chess 


97OSP0I89 


Chess 


98 OSP 0300*'° 


Phipps 



DATE OF 
DECISION 



12/14/98 



08/14/98 
01/08/99 



PI BLISHED DECISION 
REGISTER CITATION 



Department of Public Instruction 

Lillie Bumette Pearsall v Wayne Cty 
Mr Steve Taylor 



Bd of Ed . Mrs Veda McNair and 



98 OSP 0944 



Smith 



08/25/98 



Secretary of Stale 

Jonathan M Demers \ Department of Secretary of State 

Department of Transportation 

Pasquale Vendettuoli v Department of Transportation 

Johnny O Shivarv Department of Transportation 

Teresa G Mitchell \ Department of Transportation 

Larry W Davis v Department of Transportation 

Sherry Lynn Noles v Department of Transportation-NCDMV 

Clarice Goodwin Arthur v Department of Transportation. Femes Division 

Robert L Swinney v Department of Transportation 

Carolyn J Pamell v Department of Transportation 

Deanna M Brown \ Department of Transportation 

University of North Carolina 

Joseph A Bryant v North Carolina A & T University 

Joseph A Bryant v North Carolina A & T University 

Douglas Love. Jr v UNC Hospitals 

Deborah J Fenner v NC Central University 

Joyce M Smith v North Carolina Central University 

Edwin Swam v University of North Carolina at Chapel Hill 

Patricia AG Roberts v Asst /Chan /Qty Mgmt /Dir Human Res UNCW 

Leo Watford. Roosevelt Partis. Claiborne Baker, et al \ University of 

North Carolina at Chapel Hill 
Johnny Johnson, Jr v A & T St University Student Union-Gnevance Bd 
Jessie L Johnson v Bernard K Locklear. UNC at Pembroke 
Jonathan L Fann v North Carolina State University Physical Plant 
Greta M Hawlhome v University of NC at Pembroke 
Robert W Brinson v NC State University 
Alberta A Ingram-Peterson v NC Central University 
Leslie Wright v NC State University 
Thomas H Hastye, III v NC A & T State University 
Fred T Jackson v LINC-Charlotte Recreational Facilities 
Betty Parks v Winston Salem State University 
Ronnie Bell v Dave Hillard. UNC at Charlone 
Brenda D Moore \ Atty Wanda Jenkins. Fayetteville St University 
Joseph Cartoll Goodlake v UNCA 

STATE TREASURER 

Hugh A Wells V Consolidated Judicial Retirement System of NC. 

Bd of Trustees Teachers and State Employees' Retirement System 
Walter Williams V Bd of Trustees NC Local Gov Emp Retirement Sys 
Alfred R Grooms v State Treasurer. Retirement Svstems Division 



TRANSPORTATION 

David Warten Dew et al 



v Motor Vehicles. Alexander Killens Comm 



UNIVERSITY OF NORTH CAROLINA 

Patncia D Hall v University of North Carolina at Chapel Hill 
Ladonna P James v UNC Hospitals 
Joyceline Sellars v UNC Hospitals 



97 OSP 1018 


Becton 


07/07/98 


3 03 NCR 343 


97 OSP 1090 


Mortison 


12/19/98 




97 OSP 1366 


Reilly 


09/01/98 




97 OSP 1565 


Smith 


12/09/98 




98 OSP 0241 


Grav 


07/08/98 




98 OSP 0269 


Chess 


08/11/98 




98 OSP 0864 


Phipps 


09/24/98 




98 OSP 0969 


Gray 


02/09/99 




98 OSP 1251 


Owens 


03/01/99 




98 OSP 1438 


Phipps 


03/15/99 




96 OSP I698*"' 


Mann 


1 2/02/98 




97 OSP 0242*"' 


Mann 


12/02/98 




97 OSP 0662 


Reilly 


06/08/98 




97 OSP 0902 


Chess 


05/29/98 




97 OSP 1297 


Smith 


06/25/98 




97 OSP 1694 


Mortison 


07/31/98 




98 OSP 01 78 


Phipps 


1 0/08/98 




98 OSP 0254 


Chess 


07/17/98 




98 OSP 0299 


Owens 


09/02/98 




98 OSP 0444 


Gray 


09/29/98 




98 OSP 0465 


Becton 


07/1 7/98 




98 OSP 0831 


Chess 


09/11/98 




98 OSP 0887 


Owens 


08/10/98 




98 OSP 1024 


Smith 


10/14/98 




98 OSP 1088 


Smith 


02/03/99 




98 OSP 11 14 


Reilly 


12/30/98 




98 OSP 1216 


Smith 


10/22/98 




98 OSP 1278 


Chess 


11/25/98 




98 OSP 1330 


Smith 


11/10/98 




98 OSP 1506 


Smith 


01/25/99 




98 OSP 1 535 


Phipps 


01/07/99 




98DST0316 


Morrison 


06/05/98 


301 NCR 166 


98 DST 0774 


Smith 


12/08/98 




98DST II2S 


Reiliy 


03/05/99 




95 DOT 1144 


Gray 


06/04/98 




98 UNC 0397 


Reilly 


08/20/98 




98 UNC 0591 


Becton 


07/20/98 




98 UNC 1113 


Smith 


10/22/98 





1755 



NORTH CAROLINA REGISTER 



April 15, 1999 



13:20 



CONTESTED CASE DECISIONS 



STATE OF NORTH CAROLINA 



COUNTY OF PITT 



IN THE OFFICE OF 
ADMINISTRATIVE HEARINGS 

98 EHR0703 



RIV ERHILLS, INC. AND W.E. DANSEY, JR.. 
Petitioner, 



V. 



NC DEPARTMENT OF ENVIRONMENT AND NATURAL 
RESOl RCES, DIVISION OF WATER QIALIT^, 
Respondent. 



RECOMMENDED DECISION 



This matter was heard before Administrative Law Judge Beecher R. Gray, on January 15. 1999. in Ayden. North 
Carolina, on a petition for a contested case hearing to appeal the Respondent's assessment of a civil penalty in the amount of 
$10,080.80. including $480.80 in enforcement costs against Petitioner for making unpermitted outlets to the waters of the State of 
North Carolina. 



APPEARANCES 



For Petitioner: 



Catherine W. Cralle 

Law Offices of James F. Hopf 

1694 East Arlington Boulevard. Suite E 

Greenville, NC 278.'^8 



For Respondent: 



Bart Njoku-Obi 

Assistant Attorney General 

N.C. Department of Justice 

P O. Box 629 

Raleigh. NC 27602-0629 

ISSUES 



(a) Whether the overflow of "fluid" on January 6, 1997. from a manhole located in Syme Circle of River Hills 
subdivision constituted the making of an outlet into the waters of the State for purposes of N.C.G.S. §143-215.1; 

(b) Whether the overflow of "fluid" on January 21. 1997. from a manhole located at 1 II Syme Circle of River Hills 
subdivision constituted the making of an outlet into the waters of the State for purposes of N.C.G.S. §143-215.1; 

(c) Whether Riverhills. Inc. and W.E. Dansey, Jr. violated N.C.G.S. §143-215.1 on January 6 or 21, 1997, by 
making an outlet into waters of the State without a permit; 

(d) Whether Respondent acted arbitrarily and capriciously by pursuing enforcement against Petitioners for the 
overflow of "fluid" from the manhole that occurred on January 6. 1997; 

(e) Whether Respondent acted arbitrarily and capriciously by pursuing enforcement against Petitioners for the 
overflow of "fluid" fromthemanhole that occurred on January 21, 1997; 

{f) Whether Respondent acted arbitrarily and capriciously by assessing civil penalties in the amount of $4,800 per 

alleged violation. 

Exhibits 

The following exhibits offered by Respondent were received in evidence: 

1. U.S. Department of the Interior Geological Survey Map Showing River Hills Subdivision (Greenville SE Quadrangle, 

1982) 



13:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1756 



CONTESTED CASE DECISIONS 



2a. -2f DWQ's Pictures of Wastewater Discharges at Riverhills Subdivision (January 6, 1997) 

3. DWQ's Picture Showing Location of Syme Circle Storm-drain Outfall as it appeared on January 6. 1997 

4. U.S. Anny Corps of Engineers' Notification of Jurisdictional Determination (December 22, 1995) 

5. Map Showing Location of the Underlying Discharges 

6. DWQ's Notice of Recommendation for Enforcement Action Against Riverhills. Inc. (January 7. 1997) 

7. Riverhills, Inc. Wastewater Collection Permit No. 3327 

8a. DWQ's Picture Showing Location of Riverhills' Lift Station as it appeared on January 21.1 997 

8b. DWQ's Picture Showing Location of the "Lift Station Manhole' as it appeared on January 21, 1997 

9. DWQ's Notice of Recommendation for Enforcement Action against Riverhills. Inc. (January 30, 1997) 

10. Riverhills. Inc. Wastewater Collection Permit No. WQ0009548 

11. DWQ's Lab Report and Chain of Custody Forms for Riverhills' Wastewater Samples (January 21. 1997) 

12. DWQ's Enforcement Package for Riverhills. Inc. and W.E. Dansey, Jr. (April 2. 1997) 

13. The Riverhills. Inc. and W.E. Dansey. Jr. Civil Penalty Assessment Document (November 27. 1996) 

14. The Riverhills. Inc. and W.E. Dansey. Jr. Civil Penalty Assessment Document (March 28. 1998) 

15. Preston Howard's Assessment Factors for Riverhills. Inc. (March 18. 1998) 

16. Draft DWQ Recommended Civil Penalties Guidance Tree (August 19. 1997) 

16a. Spreadsheet showing DWQ assessments issued under the Draft Guidance Tree (from No. 16 above) 

1 7. The Riverhills. Inc. and W.E. Dansey. Jr./DWQ Consent Agreement (March 1 7. 1 997) 

18. Randy Doub's Letter to Jill Hickey Regarding Consent Agreement (March 12. 1997) 

19. Randy Doub's Letter to Jill Hickey Regarding Money Spent on Sewer System (January 27, 1997) 
The following exhibits offered by Petitioner were received in evidence: 

P6. Division of Environmental Management - Chemistry Lab Report/Water Quality, 1/22/97 

PI 2. Letter to Permit Holders from A. Preston Howard re: Secretary McDevitt"s Mandate for Increased penalties and Memo 
re: Same, from Wa\ne McDevitt, 8/29/97. 

P14. Letter to William E. Dansey. Jr. from A. Preston Howard notifying WEDCO of Assessment of Civil Penalties for January 
6, 1997 and January 21. 1997 Discharges. 4/15/98. 

PI 5. Invoices for Improvement and Maintenance Costs, with Summary. 1995-1998. 

PI 8. Chronology of Improvements and Enforcement (Demonstrative Summary) 

PI 9. Affidavit of Jeff Byrd. Greenville Utilities Company. 1/7/99. 

FINDINGS OF FACT 

7757 NORTH CAROLINA REGISTER April 15. 1999 13:20 



CONTESTED CASE DECISIONS 



1 . Petitioner. Riverhills, Inc. is a corporation duly incorporated and in good standing under the laws of the State of 
North CaroHna. 

2. The Riverhills Subdivision is located outside of Greenville, North Carolina, on Highway 33 East. Riverhills. 
Inc. is responsible for operation and maintenance of the Subdivision's sewer collection system, which includes a pump station 
located off Syme Circle. Riverhills. Inc. holds two nondischarge permits issued by the N.C. Division of Water Quality ("DWO") 
regarding this sewer collection system: 

A. Wastewater Collection Permit No. WQ0009548. W.E. Dansey. Jr.. purporting to act on behalf of 
Riverhills. Inc.. filed an application with the DWQ for the construction and operation of a sewer 
collection system for the River Hills Subdivision. A permit was issued on July 8. 1994. to Riverhills. 
Inc. for the construction and operation of approximately 2921 lineal feet of 8-inch gravity sewer to 
serve 54 single family lots of River Hills Subdivision - Section 5 and the discharge of 19.440 GPD of 
collected domestic wastewater into the Greenville Utilities Commission's existing sewerage system. 

B. Wastewater Collection Permit No. 3327. This permit was issued on August 16. 1974. to Riverhills. 
Inc. for the construction and operation of approximately 9.300 lineal feet of 8 inch sewers and pump 
station with dual pumps and approximately 12.620 lineal feet of 6-inch force main to serve River Hills 
Subdivision, and the discharge of collected wastewater into the City of Greenville's existing sewerage 
system. 

3. Wastewater Collection Permits No. 3327 and WQ00G9548. as nondischarge permits, do not authorize Riverhills. 
Inc. to discharge untreated wastewater into waters of the State. Both permits contain conditions requiring the wastewater 
collection facilities to be properly maintained and operated. 

4. On January 6. 1997. Ms. Lyn Hardison an Environmental Technician with DWQ's Washington Regional Office, 
received a citizen's complaint that a manhole located in Syme Circle of the River Hills Subdivision was overflowing with 
wastewater. Syme Circle is a cul-de-sac. lined with houses on either side of the street. Ms. Hardison observed and photographed 
the untreated wastewater overflowing from the manhole and running down the surface of the street to a storm drain. 
(Subsequently, the attorney for Riverhills. Inc. confirmed in a letter dated January 27. 1997. that the overflow was in fact sewage.) 
Ms. Hardison followed the storm drain to its outfall, and observed the wastewater discharging directly into wetlands adjacent to 
Syme Circle. The wetlands had been confirmed as such by the U.S. Arm\' Corps of Engineers about thirteen months earlier. The 
wetlands drain into an unnamed tributary to Hardee Creek, which in turn flows into the Tar River. These waters are classified as 
class c - nutrient sensitive waters. 

5. When Ms. Hardison arrived at the overflowing manhole at Syme Circle on January 6. 1997. there were no 
representatives from Riverhills. Inc. present. She then contacted Riverhills. Inc. and Mr. Bruce Gallinger. a maintenance 
supervisor, responded the same day. Prior to being contacted by Ms. Hardison. Riverhills. Inc. was not aware that the manhole was 
overflowing. Within hours, agents of Riverhills had removed the blockage and restored proper function of the system. DWQ sent 
Riverhills. Inc. a written Notice of Recommendation for Enforcement on January 7. 1997. regarding the incident. B\ letter dated 
January 13, 1997. the president of Riverhills. Inc.. W.E. Dansey. Jr.. infonned DWQ that the January 6. 1997 overflow was 
caused by a grease blockage in the sewer collector line. 

6. The Syme Circle manhole was constructed and operated pursuant to Permit No. 3327. 

7. On January 21. 1997. Ms. Hardison returned to the Riverhills Subdivision on a follow-up visit to the Syme 
Circle manhole. A short distance from the Syme Circle manhole, she observed that the emergency light was activated on the 
Riverhills' sewer pump station. Upon closer observation. Ms. Hardison noticed that the pumps in the station were not operating. 
As a consequence of their operational failure. Ms. Hardison also observed that a second manhole behind the pump station was 
overflowing with what appeared to be untreated wastewater. Ms. Hardison took samples and continued that the overflow- 
consisted of untreated wastewater. The overflowing manhole was directly located in. and discharging wastewater into, the 
wetlands noted in paragraph no. 3 above. 

8. When Ms. Hardison arrived at the overflowing manhole on January 21.1 997. there were no representatives from 
Riverhills. Inc. present. She then contacted Ri\erhills. Inc.. and Mr. Tre\ Dansey and Mr. Bruce Gallinger responded the same 
day. Upon inspection, agents of Riverhills found that the overflow had been caused b\ a blown circuit breaker on a Greenville 
Utility Company transformer which interrupted power to the pump station. The fuse had been blown due to a squirrel getting into 
the transformer. Within hours power was restored to the pump station and Riverhills ensured that proper function of the s>stem 



13:20 NORTH CAROLINA REGISTER April 15, 1999 1758 



CONTESTED CASE DECISIONS 



was resumed. Prior to being contacted by Ms. Hardison, Riverhills, Inc. was not aware that the manhole was overflowing. DWQ 
sent Riverhills, Inc. a written Notice of Recommendation for Enforcement on January 30, 1997, regarding the incident. By letter 
dated February 4, 1997, the president of Riverhills, Inc. informed DWQ that the January 21, 1997 pump failures were caused by 
failure of the pump station's circuit breaker. 

9. The manhole observed to be overflowing on January 21,1 997, was constructed and operated pursuant to Permit 
No. WQ0009548. 

10. The January 6. 1997 discharge resulted in part from inadequate operation and maintenance (and lack of routine 
monitoring) of the sewer collection system by Petitioners. The most immediate cause of this discharge was a grease blockage. 
The January 21, 1997 discharge resulted, in part, from failure of Petitioners to install, maintain and monitor adequate warning 
systems at the River Hills' sewer pump station, given the fact that the same manhole located behind the pump station had had 
several reported discharges just thirteen months earlier. The most immediate cause of this discharge was an unanticipated power 
outage in the subdivision. 

11. In April of 1997, DWQ's Washington Regional Office recommended to the Director of DWQ, Mr. Preston 
Howard, that enforcement action be taken against Riverhills, Inc. 

12. On March 17. 1997. Riverhills entered into a Consent Agreement with Respondent concerning a discharge 
violation that had occurred in 1995. During the negotiation of that agreement. Petitioners had informed Respondent's counsel of 
the January 1997 events and their immediate efforts to correct the problems. Although it was expressly understood that the 
Consent Agreement did not resolve the January 1997 events. Petitioners were under the impression from Respondent's counsel 
that the Januan. events would be looked upon more favorably if the 1995 event was resolved by entering into the Consent 
Agreement. 

13. Petitioners received no further indication that the Department was pursuing enforcement until they received, 
more than fourteen (14) months later, on April 18, 1998, a notice of Assessment of Civil Penalties in the amount of $10,080.80 
from the Department. 

14. Petitioners' wastewater collection system had been constructed in compliance with design criteria mandated and 
approved by Respondents. However, in an effort to ensure that overflows such as these were prevented in the future between 
January of 1997 and April of 1998. Petitioners spent over $8,000.00 on improvements to and maintenance on the sewer and pump 
system. These improvements were made upon petitioners" own initiative without any request by, or direction and guidance from. 
Respondent. 

15. The improvements that were made by Petitioners between January of 1997 and April of 1998 included the 
installation of an auto-dialer, whereby four key people are immediately notified by pager if water levels rise above normal levels. 
Such a system is considered by Respondent to be a "fail-safe" system. 

16. Other improvements included the replacement of a pump, the installation of a new motor, and the installation of 
a self-primer for the pump. Additionally. Petitioners have entered into an agreement with area residents to continuously monitor 
water levels at the pump station. 

17. All of these improvements and arrangements were done prior to Petitioners receiving, in April of 1998. notice 
that Respondent intended to assess penalties for the January 1997 overflows. 

18. No overflows or other major disruptions of the system have occurred since January of 1997. 

19. During the time period that the "Riverhills. Inc. Enforcement Recommendation" was pending before Mr. 
Howard, nearly all such enforcement requests from across the state were put on hold as the Division reviewed its statewide 
enforcement policy. At the conclusion of the policy review, which spanned nearly six months, Mr. Howard resumed his 
consideration of various enforcement requests, including the "Riverhills. Inc. Enforcement Recommendation". 

20. In assessing the ci\il penalty against Petitioner, Respondent considered each of the factors listed in N.C.G.S. 
§1438-282.1, as required by N.C.G.S. § 143-2 15.6A. 

21. On March 18, 1998. A. Preston Howard. Jr.. Director of Water Quality, reviewed the enforcement file and 
determined that most assessment factors were insignificant. Factors found to be "not significanf were: degree of harm to natural 

1759 NORTH CAROLINA REGISTER April 15, 1999 13:20 



CONTESTED CASE DECISIONS 



resources, public health, or private property; effect on ground or surface water quantity or qualit>; cost of rectifying the damage; 
whether the violation was committed willfully or intentionally; and cost to the State of enforcement procedures. 

22. The Department does not pursue enforcement or the assessment of penalties for every violation of law or permit 
conditions. Mr. Howard indicated that under man> circumstances no enforcement action will be taken. Those circumstances 
include: when the violation results from unforeseen circumstances; the failure of a man-made device; when the violation does not 
cause significant damage; or if a discharge is only minimal. 

23. On March 28. 1998. even though he had found that the violations were not intentional, and did not result in any 
significant harm. Director Howard assessed penalties against Petitioners in the amount of $10,080.80, which included $4,800.00 
per violation and $480.80 in enforcement costs. 

24. In assessing these penalties. Director Howard did not consider: corrective actions taken by Petitioners to address 
the problem; improvements to the systems to ensure that no future problems occurred; the costs of such improvements relative to 
the penalties assessed; or whether there had been any additional problems with the system. 

25. In assessing these penalizes. Director Howard relied soleK upon a Draft PenaltN' Guidance Tree, dated August 
19, 1997, which post-dated the violations by seven months. 

26. Petitioner did not receive notice of these assessed penalties until April 17. 1998. which was more than fourteen 
(14) months after the overflows occurred, and more than thirteen (13) months after Petitioners' last contact with Respondent. 

27. With regards to the corporate status of Riverhills. Inc. during the time period of the unpermitted discharges 
discussed above, the following is noted: 

A. During the period of .lanuary 1. 1 997. through January 3 1 , 1997, Riverhills, Inc. was a corporation duly 
incorporated under the laws of the State of North Carolina. W.E. Dansey, Jr. was President of 
Riverhills, Inc.; and 

B. As of March 10. 1994, through January 31, 1997, Riverhills, Inc. was under Revenue Suspension. 
Furthermore, from April 24. 1996. through January 31, 1997. Riverhills. Inc. was under Administrative 
Dissolution. 

Based on the foregoing Findings of Fact, the undersigned Administrative Law Judge makes the following: 

CONCLUSIONS OF LAW 

1. All parties properly are before the Office of Administrative Hearings, and the Office has jurisdiction over the 
parties and the subject matter. 

2. All parties have been correctly designated, and there is no question as to misjoinder or nonjoinder. 

3. Wetlands constitute waters of the State pursuant to N.C.G.S. §143-212. 

4. Petitioner, Riverhills, Inc. is a corporation duly incorporated and in good standing under the laws of the State of 
North Carolina. 

5. Petitioner, W.E. Dansey. Jr. is the President of Riverhills. Inc. 

6. The overflow of wastewater on January 6. 1997, from a manhole located in Syme Circle of River Hills 
Subdivision into wetlands did not violate N.C.G.S. §143-215.1 by making an outlet into the waters of the State without a pennit. 

7. The overflow of wastewater on January 21, 1997, from a manhole located behind the River Hills Subdivision 
pump station into wetlands did not violate N.C.G.S. §143-215.1 by making an outlet into the waters of the State without a permit. 

Based on the foregoing Findings of Fact and Conclusions of Law. the undersigned makes the following: 

RECOMMENDED DECISION 



13:20 NORTH CAROLINA REGISTER April! 5, 1999 1760 



CONTESTED CASE DECISIONS 



The Environmental Management Commission should reverse the decision of the Director of the DWQ to assess a civil 
penalty in the amount of $10,080.80 against Petitioners because both discharges were proximately caused by intervening factors 
and not the result of intentional acts or omissions by Petitioner. Although Petitioner could or should have had proactive measures 
in place, it was not required by the regulators and Petitioner has since gone to significant expense to upgrade its system 
voluntarily. The 14 month delay between the events cited and the priority assessment is unreasonable. 

ORDER 

It is hereby ordered that the agency serve a copy of the final decision on the Office of Administrative Hearings, P.O. 
Drawer 27447, Raleigh. NC 2761 1-7447, in accordance with N.C.G.S. §l50B-36(b). 

NOTICE 

The agency making the final decision in this contested case is required to give each party an opportunity to file exceptions 
to this recommended decision and to present written arguments to those in the agency who will make the final decision. N.C.G.S. 
§150B-36(a). 

The agency is required by N.C.G.S. §l50B-36(b) to serve a copy of the final decision on all parties and to the Office of 
Administrative Hearings. 

The agency that will make the final decision in this contested case is the North Carolina Environmental Management 
Commission. 

This the 18'" day of March, 1999. 



Beecher R. Gray 
Administrative Law Judge 






776/ NORTH CAROLINA REGISTER April 15, 1999 13:20 



CONTESTED CASE DECISIONS 



STATE OF NORTH CAROLINA 



IN THE OFFICE OF 
ADMINISTRATE E HEARINGS 



UPCHIIRCH, INC. ) 

Petitioner, ) 

V. ) COl NTY OF MARTIN 

) 98EHR0776 
N.C. DEPARTMENT OF ENVIRONMENT AND NATURAL ) 
RESOURCES, DIVISION OF WATER QUALITY ) 

Respondent, ) 

and ) 

THE SIERRA CLl B AND DOGWOOD ALLIANCE ) 
Respondent-Intenenors ) 


NORTH CAROLINA FORESTR\ ASSOCIATION ) 
Petitioner, ) 

V. ) COUNTY OF WAKE 

) 98EHR0777 
N.C. DEPARTMENT OF ENVIRONMENT AND NATUItAL ) 
RESOURCES, DIVISION OF WATER Ql ALITY ) 

Respondent, ) 

and ) 

THE SIERRA CLUB AND DOGWOOD ALLIANCE ) 
Respondent-lnter\enors ) 



ORDER AND RECOMMENDED DECISION 

This matter came on for hearing before the undersigned Administrative Law Judge on January 14. 1999. upon cross- 
motions for summary judgment. Petitioners motions were granted. Petitioner Upchurch. Inc. ("Upchurch") was represented by 
R. Sarah Compton and William F. Lane. Petitioner North Carolina Forestry Association ("NCFA") was represented by Charles D. 
Case and Craig A. Bromby. Respondent Division of Water Quality ("DWQ") of the Department of Environment and Natural 
Resources ("DENR") was represented by Jill B. Hickey. Kathryn Jones Cooper, and Brian J. McGinn. Respondent-Intervenors 
Sierra Club and Dogwood Alliance were represented by Donnell Van Noppen 111 and Lark Hayes. (DWQ and Respondent- 
Intervenors Sierra Club and Dogwood Alliance may hereafter be referred to as the '"Respondents"). 

As reflected in the record, the undersigned ruled on Respondents" motion to dismiss. After due consideration of the 
arguments of all counsel tiled on October 2. 1998 and argued on October 19. 1998, Respondents" motion to dismiss the allegation 
by Upchurch that DWQ erroneously denied Upchurch"s application for coverage under NPDES Stormwater General Permit No. 
NCG040000 for the timber products industry (the ""NCG04 pemiit"") was granted. Respondents" motion to dismiss the claims by 
both NCFA and Upchurch that DWQ erroneously e.xcluded chip mills from coverage under NPDES Stormwater General Pennit 
No. NCG2 10000 for the timber products industry (the ■■NCG21 permit") was denied. 

ISSUE 

Did DWQ exceed its authority or jurisdiction, act erroneously, fail to use proper procedure, act arbitrarily or capriciously, 
or fail to act as required by law or rule in its decision to issue NPDES Stormwater General Pemiit No. NCG2 10000 for the timber 
products industry with a term that excluded "chip mills"" from coverage by that permit? 



13:20 



NORTH CAROLINA REGISTER 



April 15, 1999 



1762 



CONTESTED CASE DECISIONS 



UNDISPUTED FACTS 

1. Petitioner Upchurch proposes to operate a wood chip mill in Williamston. NC. Petitioner NCFA is a private, non-profit 
organization whose members are engaged in forest management and timber products industries, including wood chip mills. 

2. On September 1. 1992. DWQ's predecessor agency, the Division of Environmental Management, issued NPDES 
Stormwater General Permit No. NCG040000 (""the NCG04 permit") authorizing the discharges of point source stormwater runoff 
associated with industrial activities classified as timber products (SIC 24). excluding logging, wood kitchen cabinets, and wood 
preserving facilities. Wood chip mills were eligible for coverage under the NCG04 permit. Between September 1. 1992 and 
August 31. 1997. approximateK 14 uood chip mills obtained Certificates of Coverage under the NCG04 permit. 

3. In the fall of 1997. the Director of DWQ. A. Preston Howard, Jr.. made a preliminarv decision not to allow general 
permit coverage for new or expanding wood chip mills. Mr. Howard instructed DWQ staff to draft a general permit for the timber 
products industn. that excluded wood chip mills in addition to the same three categories of facilities that were excluded under the 
NCG04 permit. DWQ staff prepared a draft of the NCG21 permit, which was noticed in the North Carolina Register on January 
2. 1998. 

4. On April 1. 1998. DWQ issued the NCG21 permit as noticed, with a term that excluded wood chip mills from coverage 
under the permit. 

5. The substantive provisions of the NCG2! permit are substantially similar to the requirements of the NCG04 permit. The 
onK substantial difference between the NCG04 permit and the NCG21 permit is that wood chip mills are excluded under the 
NCG21 permit. 

6. At the time that DWQ issued the NCG2 1 permit on April 1 . 1 998. DWQ had no water quality monitoring data concerning 
the impacts of stormwater discharges from wood chip mill facilities. Thus, at the time that DWQ issued the NCG21 permit on 
April 1. 1998. DWQ had no water quality monitoring data indicating that the impacts from stormwater discharges at wood chip 
mills were different from water quality impacts from stormwater discharges at other timber products facilities covered b> the 
NCG21 permit. ConsequentK. DWQ's decision to exclude chip mills from the NCG21 permit was not based on concerns arising 
from quality problems associated w ith stormwater discharges from chip mills. 

7. DWQ's decision to exclude chip mills from the NCG21 permit was based on concerns about secondan.- water quality 
impacts (sedimentation and erosion) from timber harvesting associated with chip mills. However, at the time that DWQ issued the 
NCG21 permit on April 1. 1998. DWQ had no water quality monitoring data indicating that water quality impacts from timber 
harvesting associated with chip mills were worse or different from water quality impacts from timber harvesting for other 
purposes. Instead. DWQ"s decision to exclude chip mills from the NCG21 permit was based on concerns about secondary water 
quality impacts from timber harvesting associated with chip mills voiced primarily by environmental groups, but also including 
some state and federal government agencies and members of the scientific community and the fact that DENR. at the instruction of 
the Governor, was undertaking a scientific stud\ to examine the issues of secondary impacts from chip mills. DWQ's decision to 
exclude chip mills from the NCG21 permit was also designed to allow DWQ to give the increased scrutiny that it can give to an 
individual stormwater permit application, to tailor permit conditions to the particular site and operation, and to provide an 
opportunity for public review and comment on the permitting decision. 

8. DWQ indicates that, when it made the decision to exclude chip mills from the NCG21 permit, it wanted to await the 
results of the study before making general permit coverage again available for new and expanded chip mills. However, at the time 
that DWQ made the decision to exclude chip mills from the NCG21 permit, the scope of the chip mill study did not include an 
analysis of quality of stormwater discharges from chip mills. 

9. DWQ's decision to exclude chip mills from NCG21 was also based, at least in part, on its claim or perception that there 
exists a threat from the location of a number of new. ""high-capacity chip mills" using new technology, and also based on an 
awareness of an Environmental Impact Statement and decision b> the Tennessee Valle\ Authority, as reflected in the record. 

10. Because new and expanding wood chip mills are excluded from the NCG21 permit, these facilities must appK for an 
individual NPDES stormwater permit. The individual permit application process is more burdensome than the general permitting 
process in that, among other things, the individual permit application requires more information, is more expensive, takes longer, 
DWQ ma\ impose site-specific conditions in the individual permit, and the public ma\ comment and request a public hearing on 
the individual permit application. 

CONCLUSIONS 



1763 NORTH CAROLINA REGISTER April 15, 1999 13:20 



CONTESTED CASE DECISIONS 



1. No genuine issues of material fact remain in the matter before the Administrative Law Judge which would prevent the 
granting of summarj' judgment in favor of Petitioners. 

2. Petitioners Upchurch and NCFA are persons aggrieved by the Respondent's decision to issue the NCG21 permit with a 
term that excludes wood chip mills from coverage under the permit. 

3. Sections 143-215. 1 and 143-211 of the General Statutes, and rules adopted by the Environmental Management 
Commission ("'EMC") set forth the authority of the EMC regarding, inter alia, the issuance of permits for the discharge of 
stormwater. 

4. The EMC has delegated its authority to issue pennits for the discharge of stormwater to the Director of the DWQ. 

5. Sections 143-215.1 and 143-211 of the General Statutes and the EMC rules adopted do not authorize the EMC to 
consider secondary or off-site water quality impacts when determining whether to issue, limit, or condition a stormwater permit. 
As a matter of law, secondary impacts are different from cumulative impacts. 

6. DWQ exceeded its authority and Jurisdiction under N.C. Gen. Stat. § 143-215.1 when it considered secondarj' (or off- 
site) impacts in its determination to exclude chip mills from the NCG2I permit. 

7. DWQ failed to act as required by law pursuant to N.C. Gen. Stat. § 143-215.1 when it excluded chip mills ft-om the 
NCG21 permit. 

8. 15A NCAC 2H.0100 authorizes DWQ to issue National Pollution Discharge Elimination System ("NPDES") permits for 
point source discharges to the waters of the state. The NCG21 permit is a NPDES permit that has been issued by DWQ pursuant 
to its delegated authority from the U.S. Environmental Protection Agency. However, pursuant to 40 CFR § 123.27(b), timber 
harvesting activities are exempt from all NPDES permit requirements. 

9. DWQ exceeded its authority under 15A NCAC 2H.0100 when it considered the impacts of timber harvesting activities in 
its decision to exclude chip mills from the NCG21 permit. 

1 0. Pursuant to N.C. Gen. Stat. § 1 1 3 A-50 et seq., the Sedimentation Pollution Control Act ("SPCA") sets forth the exclusive 
statutory authority regarding the water qualits' impacts of sedimentation and erosion from timber harvesting activities. Pursuant to 
N.C. Gen. Stat. § 113A-52.1{b), timber harvesting activities must comply with either the provisions of the SPCA or the Forest 
Practice Guidelines Related to Water Quality. 

11. Pursuant to N.C. Gen. Stat. § 113A-54. the Sedimentation Control Commission has been designated the agencN with 
administrative authority to implement the SPCA. Pursuant to 15A NCAC 11.0101(b), the Department of Environment and Natural 
Resources has designated the Division of Forest Resources as the agency with sole administrative authority to implement the 
Forest Practice Guidelines Related to Water Quality. Neither the SPCA nor the Forest Practice Guidelines Related to Water 
Quality provides authority for the EMC or DWQ to consider the environmental impacts of sedimentation and erosion from timber 
harvesting activities in determining whether to issue, limit, or condition a stormwater permit. 

12. As a result of the foregoing, DWQ exceeded its authority and Jurisdiction when it considered the secondary impacts of 
sedimentation and erosion from timber harvesting activities that provide wood to chip mills and, based on that consideration, 
decided to exclude chip mills from NCG21. 

13. If it is later found that DWQ did not exceed its authority or Jurisdiction in excluding chip mills from the NCG21 permit, 
based on the deference that Judicial precedent accords decisions by DENR, I am constrained to find that DWQ"s decision to 
exclude chip mills from the NCG21 permit was not arbitrarv and capricious or an abuse of discretion. See Everhart & Associates, 
et al V. Dep't of Environment, Health and Natural Resources, 127 N.C. App. 693, 493 S.E.2d 66 (1997). 

RECOIV11V1ENDED DECISION 

It is recommended that summar\ Judgment, pursuant to Rule 56. Rules of Civil Procedure, and 26 N.C.A.C. 3.0105(6) be 
entered in favor of Petitioners Upchurch, Inc., and North Carolina Forestn, Association because there is no genuine issue of 
material fact and, as a matter of law. Respondent lacks statutory authority to consider secondar> (or off-site) water quality impacts 
of chip mills in determining to exclude chip mills from NPDES Stormwater General Permit No. NCG2 10000. The permit term 
excluding chip mills from the coverage of NPDES Stormwater General Pennit No. NCG2 10000 should be stricken because it was 



13:20 NORTH CAROLINA REGISTER April 15, 1999 1764 



CONTESTED CASE DECISIONS 



based on matters outside the lawful authority and jurisdiction of Respondent, and DWQ should be directed to issue or reissue 
NCG2 10000 without any term excluding chip mills. 

NOTICE 

The final agency decision in this contested case shall be rendered by the NPDES Committee of the Environmental 
Management Commission. Each party has the right to file exceptions to the recommended decision and to present written 
arguments on the recommended decision to the NPDES Committee. The NPDES Committee shall serve a copy of its decision on 
all parties, the attorneys of record, and the Office of Administrative Hearings. 

This the 19* dav of March. 1999. 






Hon. Robert Roosevelt Reilly. Jr. 
Administrative Law Judge 



7765 NORTH CAROLINA REGISTER April 15, 1999 13:20 



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